Inca Designs, Inc. (fka IDGI)

[heads]

The cup with handle is the most common and most successful base, popping up consistently in stock charts for many big winners.

O'Neil, who discovered the pattern, wrote that it "scares out or wears out the remaining weak holders and takes other speculators' attention away from the stock. A more solid foundation of strong owners who are much less apt to sell during the next advance is thereby established."

Volume often dries up near the end of the handle's down-drifting price movement, O'Neil says.