Traders will commonly observe the teacup forex pattern or cup and handle pattern in small time frames and large time frames. When a downward price wave occurs and is followed by a stabilizing period, the teacup pattern will emerge. The prices will also be noticed rallying to near equal size before a decline happens. As the name implies, a u-shape or cup in the teacup pattern will form. After the u-shape pattern forms, the handle will follow when the price moves sideways or drifts downward. Keep in mind that the handle may take the shape of a triangle.