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Cup and Handle Exploration for Amibroker (AFL)
kaiji
almost 8 years ago
Amibroker (AFL)

Rating:
5 / 5 (Votes 1)
Tags:
amibroker, exploration, pattern

This is formula finds the cup and handle chart pattern in stocks for Amibroker.

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Indicator / Formula

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_SECTION_BEGIN("Cup and Handle exploration");
// Cup and Handle exploration written by Jerry Tyliczka 
// visit us at: http://portals.wallstreettape.com 
// 
// This code written per specifications found at 
// http://www.haikulabs.com/mh.htm 
// Version 1.0 
// 
// This code calculates the Alpha, Delta, Beta and Gamma values 
// but they are not used in the filter criteria as specified 
// by the article which this code was based on. 
// 
// Look for additional changes as I tweak the below code. 
// I will also include Scan feature and Backtesting in future release. 
// 
// Comments, please write to admin@wallstreettape.com 

MinPrice=0.1; 
MinVolume=10000; 

//Left side of Handle formation can occur anywhere from 2-25days - look at the last 25 bars AND get the number of bars since condition met. 

LH=HHV(Close,25); // Highest close past 25 days. 
BLH=HHVBars(Close,25); // Tells us # of bars that have past since high reached. Used to determine Lowest bar. 

BH=LLV(Close,BLH); // Lowest close since the highest value was reached/ 
BBH=LLVBars(Close,BLH); // number of bars that have past since lowest value. 

NBLH=BLH-BBH; // this is the number of bars in the formation of the left side handle. NBLH must be atleast 2 to be a valid handle formation. 

// Now lets get the cup formation. Cup formation can occur anywhere from 23 to 145 days. The left side of the cup can be from 20-120 days AND the right side can be anywhere from 3-25 days. 

// get the right side of the cup(low). 

BC=LLV(Close,BLH+25); // look at 25 bars since the left side of handle. 
BBC=LLVBars(Close,BLH+25); 

// get the left side of the cup. 

LC=Ref(HHV(Close,120),BBC*-1); 
BLC=Ref(HHVBars(Close,120),BBC*-1); 

// Get highest value before left side of cup started to form. 

KC=Ref(HHV(Close,30),BLC*-1); 
BKC=Ref(HHVBars(Close,120),BLC*-1); 

Delta= LC/KC; 

//Calculate the up/down relative price value during time frame RC (Right Cup Formation) 

URPV=DRPV=0; 
i=EndValue(BLH); 
j=EndValue(BBC); 
do 
{ 
URPV = 
IIf(Ref(Close,i*-1)>Ref(Close,(i+1)*-1),Ref(Volume,(i*-1))*Ref(Close,(i*-1))-Ref(Close,(i+1)*-1),URPV); 
DRPV = 
IIf(Ref(Close,i*-1)<Ref(Close,(i+1)*-1),Ref(Volume,(i*-1))*Ref(Close,(i+1)*-1)-Ref(Close,(i*-1)),DRPV); 
i++; 
} while (i<j); 
Alpha = URPV/DRPV; // Should be >1 

// Calculate Beta 

DRPV=0; 
i=EndValue(BBH); 
j=EndValue(BLH); 
do 
{ 
DRPV = 
IIf(Ref(Close,i*-1)<Ref(Close,(i+1)*-1),Ref(Volume,(i*-1))*Ref(Close,(i+1)*-1)-Ref(Close,(i*-1)),DRPV); 
i++; 
} while (i<j); 
Beta = URPV/DRPV; 
Gamma = log(Alpha) + log(Beta) + delta; 

AddColumn(LH,"Left Handle"); 
AddColumn(BH,"Bottom Handle"); 
AddColumn(BC,"Bottom Cup"); 
AddColumn(LC,"Left Cup"); 
AddColumn(ALPHA,"Alpha"); 
AddColumn(DELTA,"Delta"); 
AddColumn(BETA,"BETA"); 
AddColumn(GAMMA,"Gamma"); 

// Filter Criteria as follows: 
// 1. Right side of handle must be at least 2 bars. NBHL>2 
// 2. Bottom of the cup must be lower than the left top of the cup. 
// 3. Left handle must be lower than or equal to the lect cup formation. 
// 4. Bottom of the cup must be less than the left handle. 
// 5. Bottom of the handle must be > 80% of the left handle + 20% of the bottom cup. 
// 6. Start of cup/handle formation must be greater than precedding chart value. LC>LC 
// 7. Minimum price and volume you can set any way you like. 


Filter= NBLH>2 AND Close>BH AND BC<LC AND LH<=LC AND BC<LH AND BH<LH AND BH>.8*LH+.2*BC AND KC<LC AND Close>MinPrice AND MA(Volume,30) > MinVolume;
_SECTION_END();

1 comments

1. arunachu

not working

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