The other variant of the cup and handle is the inverse cup and handle. The trend direction prior to the pattern can either be upward or downward. Bulkowski (2005) explains that, contrary to expectation, with the inverse cup and handle, prices actually rise prior to the pattern over half of the time. Thereafter prices rise gently and slowly create a curved top and then gently move back down creating a long term dome "n". The handle portion is a retracement upward from the right side of the cup (called the lip) and then a reversal downward toward the price level bottom of the left side of the cup's lip; it is usually a sharper peak like the caret symbol "^" and does not rise in distance as far as the cup portion's highest high. A sell signal is triggered when prices surpass the low of the bottom of the right side of the cup (i.e. its lip).
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