For the pattern to be valid, several rules must be respected:
- The cup with handle pattern must be preceded by a significant bullish movement.
- The cup’s lowest trough must be under 50% of the bullish movement that preceded the pattern’s formation.
- The handle's lowest trough must be under 50% of the cup’s height.
- The cup with handle pattern must be preceded by a significant bullish movement.
- The cup’s lowest trough must be under 50% of the bullish movement that preceded the pattern’s formation.
- The handle's lowest trough must be under 50% of the cup’s height.