The cup and handle pattern is a bearish price action movement trend, signifying a downtrend in the movement. You will primarily find this particular type of pattern in the graph's lower region, where the prices are usually lower than the speculative amount. As the market moves towards a bearish reversal, you will find prices moving uptrend. At the point of reversal, the price will remain high, but it will soon decline, establishing a bearish pattern from the bullish one.