The Cup and Handle is a bullish continuation chart pattern that forms during an uptrend.
After an initial rise, the price enters a correction phase before gradually recovering towards its previous highs, forming the cup. A new, generally shallower consolidation then forms the handle below the neckline.
As long as the neckline has not been broken, the pattern remains a potential setup. A bullish breakout above the neckline validates the Cup and Handle pattern, and a continuation of the uptrend may then be considered.
In trading, two theoretical targets can then be considered: a first target by projecting the height of the handle above the neckline, followed by a second target based on the height of the cup.
The indicator analyzes the last 150 bars to identify Cup and Handle patterns matching the criteria defined by the user.
Detected patterns are displayed directly on the chart using markers on key points and the pattern outline. Several elements can be displayed or hidden: arrows, lines, triangles, and the theoretical targets.
The indicator displays both theoretical targets of the pattern: a first target by projecting the height of the handle above the neckline, followed by a second target based on the height of the cup.
Many parameters allow you to adapt the display to your own criteria. All settings can be adjusted directly from the indicator's “Configuration” menu in ProRealTime, without modifying the code.
To search the market for stocks showing a Cup and Handle pattern, use our Cup and Handle Screener.
Adjustable validation criteria:
Available filters:
Display Options:
Video presentation:
Details of available settings:
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Disclaimer
Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations. The automated trading systems offered have been developed and optimised using historical data; however, past performance is no guarantee of future results. Investing in the financial markets involves risks up to and including the total loss of capital. The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.
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