How to find cup and handle stock picks

Trading cup and handle stock picks is valid technical trading strategy that generates nice returns. It can be used in all time frames although it makes the biggest gains in multi-day trading strategies. Swing or position traders will use it more effectively than daytraders.

The first step that should be described in trading plan for cup and handle chart pattern strategy is definition of steps leading to cup handle stock picks. There are three ways how to identify this pattern on the charts.

You can do it manually when going through your watch list you have in your chart analysis software. And when you see this pattern you draw the style manually. This technique is very good especially when looking at mid-term charts like weekly charts.

cup and handle stock picks 01 - ATHN

Cup and handle price pattern screeners

Two other ways are automatic screeners looking for cup & handle pattern. Most of them are defined to find such a pattern on actual daily charts. It means that this pattern forms during previous few weeks or months.

There is a formula for the Amibroker, stock chart analysis and market screening software. I use this software personally and found a formula in AFL library that describes scanner for cup & handle chart pattern.

This library is available only for Amibroker users with valid license so I cannot publish the formula here. But you can see what results are generated by this stock market screener used in Amibroker on the image below.
cup and handle stock picks 02 - screener
Third option is to use FinViz website and its stock screeners. It is not exact cup and handle stock picks screener on this site. But it is possible ot use similar chart pattern, ascending triangles, to find cup&handle pattern. Just select Screeners option from Main menu and then select Triangles Ascending in Signal parameter.

It provides list of stocks with triangle pattern. You can check them visually and cup and handle can be found there too. You can see it on the example below.
cup and handle stock picks 03 - KBR
I recommend to use FinViz site or to buy Amibroker stock analysis software. Amibroker is more powerful as it offers possibility to define your own screeners that can be modified much more than FinViz screeners. But the FinViz is also a very good choice for basic screening.

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