Cup and Handle chart patternThis script identifies chart patterns: Cup and Handle. At the same time, it identifies not only these classical patterns, but even a wider range of similar reverse figures .
It has many useful settings:
-- You can choose by which pivots you want to identify patterns - by the edges of wicks (tails, shadows), or by the edges of candle bodies.
-- You can set the minimum number of pivot points that the pattern must contain.
-- You can also set the minimum depth of the shapes. It is important for successful trading.
-- !!! Most importantly, I have added a very useful functionality for those who trade based on chart patterns. Unlike my previous scripts which only identified patterns, in this one I've added the functionality to filter out patterns that I think appear in the wrong places . It is the base level filter. It filters out many, but not all, patterns in inappropriate places. If you want to order the development of such functionality with great opportunities - please contact me.
-- In addition, you can set how "flat" relative to the horizon the identified patterns should be .
You can also customize your styles.
! All key settings are accompanied by detailed tooltips
Handle
Code for Cup With Handle calculations (using Pine)Cup with Handle formation calculations using Pine.
First of all, ignore all other lines in the example chart except the two FAT lines. The two fat lines are the ones that define the Cup With handle or in the example chart: a Reversed Cup With Handle.
Note: Handle does not always develop and sometimes the final target price is reached without forming any handle.
This script can calculate both Cup With Handle ( CH ) and Reversed Cup With Handle ( RCH ). Just order the input values accordingly.
For more information about Cup With Handle, use google:
www.google.se
The script need two input parameters : The highest price in the Cup formation and the lowest price in the cup formation or vice versa for the Reversed Cup formation.
Best regards,
/Hull, 2015.05.20.16:31
