Cup and Handle Pattern Indicator Download for MetaTrader5 - Free - [TFLab] - MT4/MT5 Resource

The Cup and Handle Pattern Indicator is part of a series of MetaTrader 5 indicators that can automatically identify the cup pattern, a classic technical analysis of chart patterns, eliminating the need for manual chart analysis.

Forming chart patterns like the cup pattern is an excellent opportunity to identify a trend continuation (trend) or reversal. So, through the blue line, this indicator identifies cup and handle patterns on the chart and highlights them for traders.

Indicator Table

Overview

One way to identify and trade with or against the trend in a swing chart is to recognize classic patterns such as the Head and Shoulders (H&SH) and the Ending Wedge. The cup pattern is also one of those patterns that, if recognized correctly, can provide suitable trading opportunities.

Buy signal conditions

The chart below shows the EUR/USD currency pair on the 1-minute time frame. On July 30, following a decline, the indicator identified a cup pattern, which could signal a trend reversal. Once the Handle is identified and cracked, Buy Positions can be entered.

Take Profit and Stop Loss for Cup and Handle Pattern

In this pattern, the stop loss can be placed slightly below the handle. To determine your take profit, consider the depth of the cup and add that distance to the breakout level.

sell signal conditions

The chart below shows the XAG/USD (silver) price on a 5-minute time frame. On June 7, after rising higher, the indicator identified a reversal cup pattern, which could indicate a trend reversal. Once the Handle is identified and cracked, Sell Positions can be entered.

Take Profit and Stop Loss for Reverse Cup and Handle Pattern

In this pattern, the stop loss can be placed slightly above the handle. To determine your take profit, consider the depth of the cup and add that distance to the breakout level.

Cup and handle indicator settings

• Zigzag line properties
• Show Zig Zag Line : Set to true to display Zig Zag Line
• Pivot period of the zigzag line : The zigzag line period is set to 2
• Zig Zag Line Style : Displayed as dotted line
• Zig Zag Line Color : blue, customizable
• Zig Zag Line Width : Set to 1
• Cup attributes
• Show Cup Pattern : Set to true to display the pattern
• Cup Pattern Color : Dark Blue

Conclusion

The Cup and Handle pattern indicator can be recognized on many price charts and symbols and can be converted into trading opportunities . To make better use of this Classic pattern , you can combine the identified pattern with other tools and trading signals such as divergence in MACD and RSI (Relative Strength Index).