Bullish◐ Heuristic
◆ The PatternA rounded bottom with a brief consolidation — then breakout
The Cup & Handle, popularized by William O'Neil, combines a rounded bottom (the cup) with a brief downward drift or consolidation (the handle) before breaking out to new highs. The cup should be a smooth U-shape, not a sharp V.
Target = Breakout + Depth of cup
The handle should retrace no more than 1/3 of the cup depth. Handle pullbacks of 8-12% are ideal (O'Neil guidelines).
// Cup & Handle — anatomy and target
Key insight: The handle represents the last group of sellers getting shaken out before the breakout. Its brevity and shallow depth signal strong underlying demand.
Pattern bridge: A U-shaped base then a small consolidation — the shape of cosine annealing with a brief plateau before the final push.