This forms the right side of the cup. What has happened so far is that the market rallied and then corrected on lower volume. Figure 1 shows a clear pattern in FSI International. The bottom of the cup shows unusually low volume which refutes the notion that the trend had reversed lower. In this case, the right side of the cup starts when prices break out of the trading range at the cup's bottom.
Volume spikes up which is exactly the confirmation needed for any trend line break.
Now the market drifts lower in a smaller correction called the handle. Volume eases as prices drop indicating a lack of sellers. When the handle pattern is broken, volume spikes again and the stock is off and running. Handles should never dip too far into the cup and usually last a few short weeks. Deep handles indicate a larger trading range rather than a small correction in a rising market.