Cup and Handler indicator

M

mo2020

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If you search for the most popular charting patterns, you will find that the cup and handle pattern is right at the top of the list.

According to Investor’s Business Daily, the cup and handle pattern is “the starting point for scoring runs and winning the investing game.” And yet, despite the popularity of this indicator, none of the major charting platforms offer a method of automatically identifying and charting the cup and handle pattern—and forget about searching for them.
That travesty ends today! My cup and handle indicator and scanner is available now, and exclusively, on the Thinkorswim platform.

Works with any instrument and on any time frame

Works with Thinkorswim Mobile

Includes scanner to find cup and handle patterns
 
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Shinthus

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As in.. if we search studies, it's already on there? Or do we need a link to the script to download it?
 
M

mo2020

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I think we need a link to the script to download it may be Ben will help
 
BenTen

BenTen

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Not possible to create an indicator for this in my opinion. You would have to identify and draw them yourself.
 
Shinthus

Shinthus

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It is not impossilble Ben check this link

My intention is really not to be a wet blanket but I just checked out this link and the examples of CWHs on there are not consistent with everything I have ever learned about them reading books and articles. They especially do not match up with Bill O'Neil's (Investor Business Daily founder) interpretation. The handle that forms on the right side of the cup, as I understand it, needs to show a moderate price decline. The psychology behind this is that the poor fools who got in at the highs of the left cup rim almost always follow human nature and sell as soon as they break even when the handle begins forming at the same price level on the right. Does this all make sense?
 
A

Adeel06

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According to Investor’s Business Daily, the cup and handle pattern is “the starting point for scoring runs and winning the investing game.” And yet, despite the popularity of this indicator, none of the major charting platforms offer a method of automatically identifying and charting the cup and handle pattern—and forget about searching for them.

That travesty ends today! My cup and handle indicator and scanner is available now, and exclusively, on the Thinkorswim platform.

This was posted on researchtrade, it costs $250, was wondering if there’s a way to code this for our members? :)
 
markos

markos

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Ben is correct in saying that it cannot be done in thinkscript. A cup with handle is very subjective.
It has to be found by looking and recognizing them on your list of charts.
  • Follow any of the former IBD managers on twitter then go to their websites and you will find that these big dollar individuals don't have that type of study either.
  • Feel free to throw $250 down a rat hole and then pay someone to translate it.
  • I have heard someone came up with something close by using a Neural Network and years of machine learning. They still had to go through all of the charts that the computer program spit out.
  • I have been an IBD investor since the early 1990s and currently belong to an IBD meet up group. Nobody in any meet up groups has such a thing, at least, if they do, they're not telling anyone.
Sorry for the tough love, Markos
 
markos

markos

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Quiz: How many have read the Manual? Huh? 🧐
What about reviewed the built in studies? No? 🧐
Look up this built in Study: SemiCupFormation in the ThinkorSwim online Study Guide. It's from TASC magazine. (y)
It will get you to the bottom of a cup where you can then look for a pocket pivot.

Google is our friend! 😀 :LOL: :ROFLMAO:
 
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R

RDMercer

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Have you ever been able to run the SemiCupFormation study? Are you able to get this to run in TOS now? I cannot. Nor can TDA / TOS Trading Desk who is top level support. I sent an email request to Thinkorswim in Utah to review / fix but no reply as yet. Wondering if there are some user settings overlooked or reason besides a coding flaw. If you have this study working would you please share the user settings so I might replicate? Many Thanks! RDM
 
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korygill

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Quiz: How many have read the Manual? Huh? 🧐
What about reviewed the built in studies? No? 🧐
Look up this built in Study: SemiCupFormation in the ThinkorSwim online Study Guide. It's from TASC magazine. (y)
It will get you to the bottom of a cup where you can then look for a pocket pivot.

Google is our friend! 😀 :LOL: :ROFLMAO:
I added SemiCupFormation to my chart...gives error about "getValue: dynamic offset cannot exceed max offset". This was on aapl 1y 1d chart with defaults.
 
R

RDMercer

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I added SemiCupFormation to my chart...gives error about "getValue: dynamic offset cannot exceed max offset". This was on aapl 1y 1d chart with defaults.
Thanks! I get the same error. Ditto others at TOS trade desk. If / When I get a reply to my fix request in a few days I'll post it. Stay tuned.
 
R

RDMercer

New member
Ben is correct in saying that it cannot be done in thinkscript. A cup with handle is very subjective.
It has to be found by looking and recognizing them on your list of charts.
  • Follow any of the former IBD managers on twitter then go to their websites and you will find that these big dollar individuals don't have that type of study either.
  • Feel free to throw $250 down a rat hole and then pay someone to translate it.
  • I have heard someone came up with something close by using a Neural Network and years of machine learning. They still had to go through all of the charts that the computer program spit out.
  • I have been an IBD investor since the early 1990s and currently belong to an IBD meet up group. Nobody in any meet up groups has such a thing, at least, if they do, they're not telling anyone.
Sorry for the tough love, Markos
The IBD stuff is totally automated. Has been for many years but they ain't selling it for any amount because it's their lifeblood. How do I know? 'Cause I asked Bill O'Neil once after I heard him give a class in the late '80's. There's no way they sit around looking at 1,000's of charts though they do use industry groups / composite rankings to winnow some of the chaff. As stated TOS is limited 'cause of the scripting language but if TDA was really interested the solution could be hard coded into the TOS product. There are sites selling C&H pattern charts / watchlists. O'Neil & Co. used to sell Daily Graphs weekly / monthly paper books filled with charts many of which were C&H. Last I checked IBD still sell a proprietary chart service which is prolly what former IBD money managers utilize.
 
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Zachc

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What your asking for simply breaks down like this.

Look up into the sky and tell me what the cloud looks like. You say it looks like a dog.
Now I look up at the same cloud and my brain focuses on finding a dog in the cloud and I see it.
Now take a picture of that cloud and upload it to your computer and write a program to find a dog.

When you ask a computer to interpereate what you are seeing it needs a finite set of rules that can define all the characteristics of the specific object you are seeing. If that object is static great we can test that but no two cup and handle formations are exactly alike.

Donate your time and money to charity it will be a better investment.
 
R

RDMercer

New member
What your asking for simply breaks down like this.

Look up into the sky and tell me what the cloud looks like. You say it looks like a dog.
Now I look up at the same cloud and my brain focuses on finding a dog in the cloud and I see it.
Now take a picture of that cloud and upload it to your computer and write a program to find a dog.

When you ask a computer to interpereate what you are seeing it needs a finite set of rules that can define all the characteristics of the specific object you are seeing. If that object is static great we can test that but no two cup and handle formations are exactly alike.

Donate your time and money to charity it will be a better investment.
Apparently William O'Neil and Co. long ago solved whatever deep dark mystery exists to automate a C&H scanner. It isn't impossible to do... just requires data, an algorithm, and enough computing horsepower / coding to accomplish the task. We did, after all, send men to the moon? The issue is TOS scripting isn't robust enough nor is the platform strong enough. Went down this rabbit hole with TOS developer long before TDA bought it out and concluded it was easier to just buy an IBD subscription and export/import a ticker list into TOS. Let O'Neil do the heavy lifting and you get industry strength / composite ratings as a bonus. Not impossible.

PS_ Here's a link to another platform's C&H scan: https://swingtradebot.com/events/61-cup-with-handle/equities
Here's a C&H subscription site: https://www.breakoutwatch.com/index.php
 
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Zachc

Zachc

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Apparently William O'Neil and Co. long ago solved whatever deep dark mystery exists to automate a C&H scanner. It isn't impossible to do... just requires data, an algorithm, and enough computing horsepower / coding to accomplish the task. We did, after all, send men to the moon? The issue is TOS scripting isn't robust enough nor is the platform strong enough. Went down this rabbit hole with TOS developer long before TDA bought it out and concluded it was easier to just buy an IBD subscription and export/import a ticker list into TOS. Let O'Neil do the heavy lifting and you get industry strength / composite ratings as a bonus. Not impossible.

PS_ Here's a link to another platform's C&H scan: https://swingtradebot.com/events/61-cup-with-handle/equities
Here's a C&H subscription site: https://www.breakoutwatch.com/index.php
I am speaking from a purely quantitative point of view when I say that describing chart patterns is equivalent to naming clouds.

One idea might be to aggregate all the cup and handle subscriptions and pick a random signal from each
Then randomly choose the same number of stocks that were not showing a C&H signal and track the progress of both portfolios.
Track both portfolios for a time and report on their performance relative to each other.

How close to random chance is the C&H signal, does it provide a statistical edge? Trust by verify everyone.
 
H

horserider

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From Bulkowski site.

Cup with Handle: Important Bull Market Results

Overall performance rank (1 is best): 6 out of 56

Break even failure rate: 5%

Average rise: 52%

Throwback rate: 62%

Percentage meeting price target: 62%

The above numbers are based on 912 perfect trades.
 
R

RDMercer

New member
I am speaking from a purely quantitative point of view when I say that describing chart patterns is equivalent to naming clouds.

One idea might be to aggregate all the cup and handle subscriptions and pick a random signal from each
Then randomly choose the same number of stocks that were not showing a C&H signal and track the progress of both portfolios.
Track both portfolios for a time and report on their performance relative to each other.

How close to random chance is the C&H signal, does it provide a statistical edge? Trust by verify everyone.
Have you ever read How To Make Money In Stocks by William O'Neil? Not sure I understand your questions as the C&H chart formation has been quantified many times. O'Neil did this when he was a student at Harvard and worked for Putnam Funds in the early '50's. He expertly presents the pattern, along with other equity / market conditions, for successful stock picking in his book. There is also an article covering C&H research on this site: https://www.breakoutwatch.com/index.php . There is a detailed descriptor on the StockCharts.com website. What I've learned over my investing lifetime is, while a very few chart patterns are "locks," NO technical OR fundamental indicator(s) used in a vacuum will guarantee profits. NONE! Anyone who buys stocks will have losses. Period. The trick is not picking stocks. It's being on the right side of the general market, never allowing a small loss turn into a big one, and knowing when to take a profit. Your portfolio will have turnover using C&H plus conservative trailing stops but you will also wake up one day holding 3 - 5 winners that more than make up for the small losses if you have and stick to rules.
 
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