Cup Finder: Circular Price Patterns and Breakout Detection

Summary

Cup Finder searches recent bars for a breakout beyond an earlier local high or low, then constructs a circular price path between the reference point and the current bar. It checks whether each bar's range intersects a channel around that curve and displays a bullish or bearish cup only when the fraction of contained bars meets the selected threshold. The user can set the maximum search length, channel width, containment rate, and whether breakout confirmation uses closes or highs and lows. The indicator can draw the cup and optional channel, label the pattern, and issue directional alerts.

The author presents the tool as experimental and frames it as a visual aid for chart analysis. The description provides no tests of predictive value, comparison with alternative pattern definitions, or guidance on entries, exits, and risk. Detection depends on adjustable geometric and containment rules, so alerts identify a configured shape rather than establish that a profitable cup-and-handle setup exists.

Key ideas

• The script searches for price breaks beyond prior local highs or lows within a configurable lookback.
• It fits a circular path and accepts the pattern when enough bars overlap its channel.
• Breakout confirmation can use closes or high and low prices, and the containment threshold is adjustable.
• The indicator supplies visual markings and alerts, but the document offers no evidence of predictive performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.