# Cup And Handle

> Trade cup and handle breakout patterns for bullish continuation. Use when identifying accumulation patterns, finding breakout setups, or timing entries on established stocks/crypto.

- **Type:** Skill
- **Install:** `agentstack add skill-ske-labs-agent-trading-skills-cup-and-handle`
- **Verified:** Yes — security-reviewed for prompt injection and unsafe behavior
- **Seller:** [SKE-Labs](https://agentstack.voostack.com/s/ske-labs)
- **Installs:** 0
- **Category:** [Finance & Payments](https://agentstack.voostack.com/c/finance-and-payments)
- **Latest version:** 0.1.0
- **License:** Apache-2.0
- **Upstream author:** [SKE-Labs](https://github.com/SKE-Labs)
- **Source:** https://github.com/SKE-Labs/agent-trading-skills/tree/main/skills/chart-patterns/cup-and-handle

## Install

```sh
agentstack add skill-ske-labs-agent-trading-skills-cup-and-handle
```

Requires the [AgentStack CLI](https://agentstack.voostack.com/docs/cli). Works with Claude Code, Cursor, and any MCP-compatible agent.

## About

# Cup and Handle Pattern

Bullish continuation pattern indicating accumulation before a breakout.

## Pattern Structure

### The Cup
- Price rounds down from resistance, forms a "U" shaped bottom (not "V"), rises back to resistance
- Duration: 7-65 weeks (classic), or scaled for crypto/lower timeframes

### The Handle
- Small pullback from resistance into a declining flag/pennant
- Should retrace 10-15% of cup depth (up to 33% acceptable)
- Must stay in upper half of cup

| Factor | Ideal | Acceptable |
|--------|-------|------------|
| Cup shape | Rounded "U" | Slightly V-shaped |
| Handle depth | 10-15% of cup | Up to 33% |
| Volume | Decreasing in handle | Stable |

## Workflow

### 1. Get Exact Data

```
get_candles_around_date(symbol=, exchange=, interval=, date=)
```

### 2. Mark Key Structure

**Cup lip** (resistance level where both sides of the cup meet):

```
draw_chart_analysis(action="create", drawing={
    "type": "resistance",
    "points": [
        {"time": , "price": },
        {"time": , "price": }
    ],
    "options": {"text": "Lip"}
})
```

**Cup bottom:**

```
draw_chart_analysis(action="create", drawing={
    "type": "highlight",
    "points": [{"time": , "price": }],
    "options": {"text": "Cup Low"}
})
```

**Handle boundaries** (2 converging or parallel trend lines):

```
draw_chart_analysis(action="create", drawing={
    "type": "trend",
    "points": [
        {"time": , "price": },
        {"time": , "price": }
    ],
    "options": {"text": "Handle R"}
})

draw_chart_analysis(action="create", drawing={
    "type": "trend",
    "points": [
        {"time": , "price": },
        {"time": , "price": }
    ],
    "options": {"text": "Handle S"}
})
```

### 3. Enter

**Standard:** Enter on break above cup lip with volume spike. Stop below handle low.
**Aggressive:** Enter as handle finds support. Tighter stop, higher risk.
**Conservative:** Wait for breakout + retest of lip (now support).
**Target:** Breakout level + cup depth (lip to bottom distance).

## Key Rules
- NEVER enter before the handle forms — cup alone is incomplete
- NEVER trust a handle that drops below 50% of cup depth — invalidates pattern
- Volume must decline in handle and spike on breakout
- Failure at lip on second attempt = potential double top, not cup and handle

## Related Skills
- **flag-pennant** — The handle is essentially a small flag
- **double-top-bottom** — Failed cup breakouts can become double tops

## Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

- **Author:** [SKE-Labs](https://github.com/SKE-Labs)
- **Source:** [SKE-Labs/agent-trading-skills](https://github.com/SKE-Labs/agent-trading-skills)
- **License:** Apache-2.0

Install and usage instructions live in the source repository linked above.

## Pricing

- **Free** — Free

## Security capabilities

Automated source analysis of v0.1.0 — what this tool can access:

- **Network access:** no
- **Filesystem access:** no
- **Shell / process execution:** no
- **Environment & secrets:** no
- **Dynamic code execution:** no

*"Yes" means the capability is present in the source — more access means more to trust, not that it is unsafe.*


## Versions

- **0.1.0** — security scan: passed — Imported from the upstream source.

## Links

- Listing page: https://agentstack.voostack.com/l/skill-ske-labs-agent-trading-skills-cup-and-handle
- Seller: https://agentstack.voostack.com/s/ske-labs
- Browse the marketplace: https://agentstack.voostack.com/browse

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