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Trading Terms

Cup and Handle

In bar charts, there is a pattern known as the accumulation pattern that is worth noting. This particular pattern usually spans from seven to 65 weeks and takes the shape of a "U" - hence the name "cup." Within this pattern, there is also a handle that typically lasts for more than one or two weeks. During this time, there is a slight downward drift in the chart and low trading volume on the right-hand side.
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