The lesson on YouTube
Watch. Then work through the idea.
Watch the English lesson first, then use the worked example and quiz below to check the idea. The article is a companion, not a transcript.
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What is actually happening?
A cup-and-handle candidate describes a decline, a recovery toward an earlier upper area and a smaller later pullback. It does not identify an institution or establish accumulation. Exact depth and duration rules vary.
Guided example · Selected swing prices and completed closes · synthetic
Measure the cup and handle
Mark the rim, cup low and handle low before discussing a later crossing.
Restart & example assumptions
Authored synthetic observations, shown in sequence. Every comparison uses only the revealed data. This is a worked learning example, not live prices, broker execution or a profitability backtest. Follow the article’s exact definitions; measurements and pattern names alone do not authorize a trade.
For charts: tap a candle or swing to inspect it; drag horizontally to browse; wheel or +/− to zoom; arrow keys to inspect; Home to restore the step view.
Make the conditions explicit.
The source example begins near 112, declines toward 100 and recovers toward the earlier upper area. Select the rim reference before later evidence.
For this measurement exercise, mark the rim, cup low and handle low. A subsequent close beyond the rim is a new condition, not part of recognizing the earlier shape.
If price returns below the rim after a qualifying crossing, record that contrary evidence. Do not widen the rim area to erase it.
The quoted rules are illustrative research specifications. Parameters are not recommendations and have not been presented as profitable backtest results.
What can this cost?
A hypothetical target projected from cup depth does not establish fill probability. The actual stop, entry, costs and nearest obstacle remain separate decisions.
How the idea can fail.
The handle can deepen, or a close beyond the rim can return inside. A rounded silhouette cannot prevent either path.
Practical habit
Write the visible stages and ratios without adding a buyer’s identity to the chart.
Go one level deeper
Fix time, depth and symmetry definitions before classifying a sample. Count candidates that never complete a rim event.
Check your understanding
Rim 112, cup low 100, handle low 108. What is directly measurable?
Further reading & boundaries
These examples are original educational exercises. General background: CME Group: position sizing; Fidelity: technical analysis. Neither endorses these example rules. No hypothetical result establishes future profitability.
Editorial revision: 13 October 2026 · Synthetic data · Educational use