The Cup and Handle pattern is a corrective pattern after a powerful advance. Generally the price will increase in a powerful manner over 2 to 4 months, then go through a market correction. The price then will sell off into the correction in a downward trend from 20 to 35 percent from the old high. As the price comes back up to test the old high, it meets sellers that bought from the old high. The price will drift into a sideways pattern with a bias to the downside, for about 4 days to three weeks. The handle is then formed 5 percent below the old high point.