Cup & Handle
Detects the cup-and-handle pattern: a rounded decline and recovery (the cup) followed by a smaller pullback (the handle). Breakout from the handle with volume confirms the pattern. Works best in coins already in an uptrend.
What is this scanner?
Detects the cup-and-handle pattern: a rounded decline and recovery (the cup) followed by a smaller pullback (the handle). Breakout from the handle with volume confirms the pattern. Works best in coins already in an uptrend.
The Cup & Handle scanner operates across 4h, 1d timeframes and refreshes every 120 seconds, ensuring you see fresh signals as conditions develop.
Origin & History
Chart pattern analysis has been a cornerstone of technical analysis since Charles Dow's foundational work in the early 1900s and Richard Schabacker's "Technical Analysis and Stock Market Profits" (1932).
The QSA implementation of Cup & Handle builds on this foundation with quantitative thresholds calibrated specifically for crypto perpetual futures markets. The 24/7 nature of crypto trading and the unique dynamics of DEX markets like Hyperliquid require different parameters than traditional market approaches.
Detection Criteria
Price Analysis
Price action analysis — evaluates candle patterns, trend structure, and key level proximity.
Volume Analysis
Volume confirmation — compares current volume against the 20-period moving average to validate signal strength.
Swing structure Analysis
Evaluates swing_structure data to identify qualifying patterns and confirm signal validity.
Grading Breakdown
Textbook cup & handle signal with 4+ domain categories confirming, rare category multipliers contributing, and strong regime alignment. These represent the top 1-2% of signals.
Strong cup & handle signal with 3+ categories confirming. Good domain diversity and meaningful rarity bonuses from contributing scanners.
Valid cup & handle detection with 2-3 confirming categories. The core pattern is present but lacks the depth of confirmation needed for higher grades.
Single-category cup & handle signal or one with limited domain diversity. Pattern detected but conviction is low — worth monitoring, not acting on alone.
Common Mistakes
Trading incomplete patterns. A cup and handle needs the handle to form; a head and shoulders needs the right shoulder to complete.
Ignoring volume on the breakout. Pattern breakouts without volume confirmation have much lower success rates.
Seeing patterns that aren't there. Confirmation bias makes traders see formations in random noise. Require clean, textbook patterns.
Not adjusting expectations for the crypto market's 24/7 nature. Patterns that take days in stocks may develop in hours in crypto.
How to Trade
Entry Context
Wait for the pattern to complete before entering. A head and shoulders, cup and handle, or wedge needs to finish forming and break its neckline/trendline with volume before it's actionable.
Risk Management
Stop loss should be placed at the pattern's invalidation level — inside the pattern for breakouts, or beyond the pattern extreme. If the pattern fails, the risk is defined and limited.
Target Framework
Use the measured move technique: project the height of the pattern from the breakout point. Most chart patterns have well-defined target projections that have been backtested for decades.
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See live setups →This is not a prediction of future price movement — it is a way to prioritize which setups deserve your analysis first.
QuantScan AI scans 500+ crypto perpetuals in real-time, 24/7. Not financial advice. Past performance does not guarantee future results.