Cup & Handle Setup
O'Neil's classic setup from 'How to Make Money in Stocks.' A rounded U-shaped base (the cup) followed by a short, shallow pullback (the handle). The handle shakes out the last weak holders before the breakout.
Target before stop: 16% reached +20% before −8% within 40 sessions. Sample: n=376 eligible setups. Average: +0.3% per setup (+0.03R).
Source-bar window: 2024-11-01–2026-10-26. Entry requires an executable breakout fill after the signal; unresolved setups receive the full replay window. Historical and illustrative, not predictive. No brokerage slippage, fees, taxes, or individualized sizing.
How this is measured →Setup Criteria
- › Cup depth typically 12–33% for leading stocks
- › Cup duration 3 weeks to 6 months
- › Handle forms in upper half of the cup
- › Handle pullback no more than 8–12% from the rim
- › Volume dries up during the handle, surges on breakout
Buy the breakout above the handle pivot (1–2 cents above handle high) on a volume surge.
Just below the bottom of the handle.
Worked Example
OXY — flagged as a Cup & Handle on Oct 27, 2026 (score 95). 26 weekly bars with the 10-week SMA.
Entry / stop / target annotations are drawn for Pro members. Unlock →
Historical detection shown for education — not a current recommendation.
What Happened Next
Forward returns after the scanner first flagged a Cup & Handle (score ≥ 70, gatekeeper passed, one signal per base) — computed from stored daily bars, no lookahead. 45 historical signals.
| After | Median Return | % Positive | Sample |
|---|---|---|---|
| 5 sessions | -0.1% | 48.9% | 45 |
Median best move inside 40 sessions: +3.3% · median worst drawdown: -4.0%. Past scanner behavior does not guarantee future outcomes. Not investment advice.
Today's Cup & Handle Setups — 15 found
| Ticker | Setup score | RS score | Trend |
|---|---|---|---|
| OXY Occidental Petroleum Corporation | 95 | 86 | ✓ |
| DVN Devon Energy Corporation | 95 | 85 | ✓ |
| XOP | 93 | 92 | ✓ |
| COP ConocoPhillips | 90 | 92 | ✓ |
| XLE | 86 | 90 | ✓ |
| WAT Waters Corporation | 82 | 87 | ✓ |
| VRSN VeriSign, Inc. | 82 | 72 | ✓ |
| HST Host Hotels & Resorts, Inc. | 81 | 80 | ✓ |
| LLY Eli Lilly and Company | 80 | 87 | ✓ |
| AMGN Amgen Inc. | 80 | 87 | ✓ |
| ELV Elevance Health, Inc. | 80 | 82 | ✓ |
| NUE Nucor Corporation | 80 | 88 | ✓ |
| USO | 80 | 95 | ✓ |
| EL Estee Lauder Companies, Inc. (The) | 73 | 80 | ✓ |
| A Agilent Technologies, Inc. | 70 | 89 | ✓ |
All Cup & Handle Matches — 40 in the latest scan
Every match from the latest run, annotated with the detector's rails. Click any card for the full chart and trade plan.
