inverted cup and handle

The inverted cup and handle pattern is a bearish reversal pattern observed on price charts. Indicating a potential end to an uptrend. It consists of two main parts: the cup, which forms as the price reaches a high. Followed by a pullback forming a rounded bottom. And the handle, which is a smaller consolidation period after the cup. Traders interpret this pattern as a shift in market sentiment from bullish to bearish. When the price breaks below the support level of the handle. It confirms the bearish reversal. Volume analysis is often confirm the breakout. Understanding how to identify and trade the inverted cup and handle pattern effectively can enhance trading strategies and capitalize on potential market reversals. Incorporating this pattern into technical analysis provides valuable insights into market dynamics and improves decision-making in various financial markets and timeframes.