One way to think of the inverted handle is a follow-up to an inverted cup. The inverted handle retraces the initial move, but not to the level of the original trend. Once you see a retracement in the form of an inverted handle of the original inverted cup pattern, setting a stop loss while selling the trend could be a potential trade idea. After the cup forms and the beginning of a noticeable handle takes shape, begin to monitor trading volume closely. You might observe a steady, daily drop in volume that could potentially indicate the end of the handle’s formation is near.