Cup & Handle (Zeiierman)█ Overview
Cup & Handle (Zeiierman) is a classic continuation-pattern scanner that detects both bullish Cup+Handle and bearish Inverted Cup+Handle structures using a compact pivot stream. It’s designed to highlight rounded reversals back to a “rim” level, followed by a smaller pullback (“handle”) before a potential continuation move.
⚪ What It Detects
A Cup & Handle (Bull) forms when price makes a rounded decline from a left rim, bottoms, then climbs back to a similar right rim. After returning to the rim, price forms a handle (a smaller pullback) that stays within an allowed retracement range. This pattern often precedes a bullish continuation attempt.
An Inverted Cup & Handle (Bear) is the mirrored version. Price makes a rounded rise to a left rim, tops, then declines back to a similar right rim. After returning to that rim, price forms a handle (a smaller bounce) that stays within the allowed retracement range. This pattern often precedes a bearish continuation attempt.
█ How It Works
⚪ 1) Pivot Extraction (Swing Compression)
The script first converts raw candles into a small set of meaningful swing pivots using ta.pivothigh() and ta.pivotlow() with Pivot span. A pivot is accepted only after it is confirmed by the lookback window, which helps reduce noise.
Key effect:
Higher Pivot span = fewer, stronger pivots (cleaner patterns)
Lower Pivot span = more pivots (more patterns, more noise)
⚪ 2) Pattern Framing (4-Point Structure)
When at least four pivots exist, the script maps them into a fixed sequence:
For a bull Cup+Handle sequence: High → Low → High → Low
These are treated as:
L = left rim pivot
B = cup bottom pivot
R = right rim pivot
H = handle pivot
For a bear inverted Cup+Handle sequence: Low → High → Low → High
Mapped similarly, but inverted.
This “4-pivot” structure is the minimum shape needed to define a cup and a handle without overfitting.
⚪ 3) Rim Similarity Filter (Cup Quality Control)
The script checks if the left rim and right rim are close enough to be considered a proper cup rim:
Rim similarity tolerance (%) controls this.
Lower tolerance = only very clean symmetric rims
Higher tolerance = allows uneven rims (more detections)
⚪ 4) Handle Depth Filter (Reject Weak or Messy Handles)
The handle is validated by measuring how deep it retraces relative to the cup depth:
Handle Retraction = |rim − handle| / |rim − bottom|
The handle must fall between:
Handle retrace min
Handle retrace max
This prevents:
tiny “non-handle” wiggles (too shallow)
deep pullbacks that break the structure (too deep)
█ How to Use
⚪ Interpreting a Bull Cup & Handle
Treat it like a continuation setup built around a key breakout level:
Cup forms
Handle forms
Breakout happens above this level
Once price returns to this breakout zone and the handle stays controlled, the structure may attempt to continue upward.
Common behaviors after a clean signal:
Push above the breakout level
Brief retest/acceptance near the breakout zone
Continuation toward the projected target if momentum holds
⚪ Interpreting a Bear Inverted Cup & Handle
Treat it like a bearish continuation/rollover setup built around the same breakout concept:
Cup forms (inverted)
Handle forms
Breakout happens below this level
Once price returns to this breakout zone and the handle stays controlled, the structure may attempt to continue downward.
Common behaviors after a clean signal:
Drop below the breakout level
Retest from underneath
Continuation toward the projected target if selling pressure persists
█ Settings
Pivot span – pivot sensitivity. Higher = smoother pivots, fewer signals. Lower = more pivots, more signals/noise.
Rim similarity tolerance (%) – rim quality filter. Lower = stricter symmetry, higher = more permissive detection.
Handle retrace min – minimum handle depth (filters weak handles).
Handle retrace max – maximum handle depth (filters messy/deep handles).
Invalidation (handle max retrace %) – “maximum tolerated damage” for handle move before the structure is considered broken.
Require breakout confirmation – only trigger when price closes beyond the rim in the expected direction.
Target multiplier (× cup depth) – scales how far the projection target is. Lower = closer targets; 1.0 = classic depth target.
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Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Cupandhandlebreakout
ADR% / ATR / LoD dist. Table - V2ADR% / ATR / LoD Distance Table (V2) + ATR Range Lines is a simple “daily volatility dashboard” that helps you quickly judge how extended a stock is during the day and where “normal” daily movement zones sit relative to price.
It’s designed to help you answer:
“Has this stock already made most of its usual daily move?”
“Am I chasing too late?”
“Where are typical +ATR / −ATR stretch and pullback zones?”
What you’ll see
ADR% (Average Daily Range %)
Shows the stock’s typical daily travel (low → high) as a percentage.
Example: ADR% = 4% means the stock often swings ~4% in a normal day.
ATR (Average True Range)
Shows the stock’s typical daily movement in price units ($ / points).
Example: ATR = 2.50 means it often moves about $2.50 per day.
LoD dist. (Low of Day distance)
Shows how far price is from today’s Low of Day, measured relative to ATR (as a %).
Higher % = more extended away from the day’s low.
Optional: ATR Range Lines (added in this version)
You can enable two guide lines that extend to the right:
ATR Up Line = Price + ATR
ATR Down Line = Price − ATR
These act like volatility guardrails to visualize “typical daily stretch” and “typical pullback” zones.
ATR “Live vs Locked” option (important)
Lock ATR to last completed day (no intraday updates):
ON (Locked): Uses the last completed daily ATR (yesterday’s finished value).
✅ ATR stays constant all day while the market is live.
OFF (Live): ATR can update intraday as today’s daily candle expands.
✅ ATR may change during the session.
Either way, ATR is still based on your chosen ATR Length (lookback period). Locking simply prevents the ATR from drifting intraday.
How to use it (Kullamägi-style principle)
Kristjan Kullamägi’s momentum style emphasizes pressing strength when conditions are right, but also respecting extension and risk/reward. This tool helps you quantify that:
If ADR%/ATR suggests the stock already moved near its usual daily range, chasing can be lower reward.
The ATR lines help you visualize when price is in a “normal stretch zone” vs a better risk area.
Locking ATR gives you stable intraday reference levels for cleaner execution.
Tips
Use ADR% to understand whether there’s likely “room” left in today’s move.
Use LoD dist. to quickly gauge if price is already far from the day’s low (extended).
Use ATR Up/Down Lines as a simple volatility framework for entries, add-ons, and risk planning.
Keep Lock ATR ON if you prefer stable levels throughout the session.
Credits
Original indicator concept & script: ArmerSchlucker
ADR% formula credit: MikeC / TheScrutiniser and GlinckEastwoot
Modifications (V2): TradersPod
Added optional ATR Up/Down lines extending to the right
Added “Lock ATR to last completed day” option for stable intraday ATR reference
Kept the original logic and purpose intact
