RE: Close above 88p - Technicals10 Apr 2026 14:03
The handle of a cup and handle pattern typically retraces no more than one-third (33%) of the cup's depth, often remaining in the upper half or third of the formation. While some interpretations allow for a maximum 50% retracement, a deeper handle reduces the pattern's reliability and suggests a weaker continuation signal.
Key Handle Characteristics:
* Optimal Depth: Usually a 10–15% correction, not exceeding 1/3 to 1/2 of the cup's depth.
* Position: Forms in the top half of the cup, often creating a downward-sloping, tight consolidation.
* Duration: Lasts between 1 to 4 weeks (shorter than the 1–6 month cup).
* Volume: Should decrease during the handle's formation, indicating a "shakeout" of weak investors.
* Tradeciety
A handle that drops too low (e.g., past 50%) or looks like a sharp downward spike indicates too much selling pressure, which often causes the breakout to fail