cup-and-handle

Name: cup-and-handle
Author: SKE-Labs

15stars2forks

How to install cup-and-handle?

ske-labs/agent-trading-skills/cup-and-handle

$npx -y skills add SKE-Labs/agent-trading-skills --skill cup-and-handle

Installs into the current project.

Summary

Define and test cup-and-handle breakout shapes. Use when measuring a rounded base, handle depth, lip break, retest, invalidation, and measured-move hypothesis without inferring accumulation.

Files · 1

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SKILL.md

1	# Cup and Handle Pattern
2
3	A conventionally bullish continuation shape. Treat its geometry, breakout direction, and measured move as testable hypotheses rather than evidence of accumulation.
4
5	## Pattern Structure
6
7	### The Cup
8	- Price rounds down from resistance, forms a "U" shaped bottom (not "V"), rises back to resistance
9	- Duration and symmetry are market- and timeframe-specific; define minimum and maximum bars before scanning
10
11	### The Handle
12	- Small pullback from resistance into a declining flag/pennant
13	- Define handle depth as `(lip - handle_low) / (lip - cup_low)` and reject only at a pretested threshold
14	- Require the handle to remain above the cup midpoint only if that rule is part of the frozen specification
15
16	\| Factor \| Preferred seed definition \| Alternative to test \|
17	\|--------\|-------\|------------\|
18	\| Cup shape \| Rounded "U" \| Slightly V-shaped \|
19	\| Handle depth \| Shallow relative to cup \| Predeclare a tested maximum \|
20	\| Volume \| Decreasing in handle \| Stable \|
21
22	## Workflow
23
24	### 1. Get Exact Data
25
26	```
27	get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<cup_bottom_date>)
28	```
29
30	### 2. Mark Key Structure
31
32	Cup lip (resistance level where both sides of the cup meet):
33
34	```
35	draw_chart_analysis(action="create", drawing={
36	"type": "resistance",
37	"points": [
38	{"time": <left_lip_time>, "price": <lip_price>},
39	{"time": <right_lip_time>, "price": <lip_price>}
40	],
41	"options": {"text": "Lip"}
42	})
43	```
44
45	Cup bottom:
46
47	```
48	draw_chart_analysis(action="create", drawing={
49	"type": "highlight",
50	"points": [{"time": <bottom_time>, "price": <bottom_price>}],
51	"options": {"text": "Cup Low"}
52	})
53	```
54
55	Handle boundaries (2 converging or parallel trend lines):
56
57	```
58	draw_chart_analysis(action="create", drawing={
59	"type": "trend",
60	"points": [
61	{"time": <handle_high1_time>, "price": <handle_high1>},
62	{"time": <handle_high2_time>, "price": <handle_high2>}
63	],
64	"options": {"text": "Handle R"}
65	})
66
67	draw_chart_analysis(action="create", drawing={
68	"type": "trend",
69	"points": [
70	{"time": <handle_low1_time>, "price": <handle_low1>},
71	{"time": <handle_low2_time>, "price": <handle_low2>}
72	],
73	"options": {"text": "Handle S"}
74	})
75	```
76
77	### 3. Enter
78
79	Standard: Enter on break above cup lip with volume spike. Stop below handle low.
80	Aggressive: Enter as handle finds support. Tighter stop, higher risk.
81	Conservative: Wait for breakout + retest of lip (now support).
82	Target: Breakout level + cup depth (lip to bottom distance).
83
84	## Evidence and Validation
85
86	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
87	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
88	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
89	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
90	- Research basis: [Lo, Mamaysky & Wang](https://www.nber.org/papers/w7613) supports testing objectively defined chart patterns, not assuming that a named shape has a universal measured-move edge.
91
92	## Key Rules
93	- NEVER enter before the handle forms — cup alone is incomplete
94	- Treat a break below the cup midpoint as structural invalidation only when the chosen specification says so
95	- Measure relative volume during the handle and breakout; do not require an untested universal multiple
96	- Failure at lip on second attempt = potential double top, not cup and handle
97
98	## Related Skills
99	- flag-pennant — The handle is essentially a small flag
100	- double-top-bottom — Failed cup breakouts can become double tops

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cup-and-handle

15stars2forks

View on GitHub

How to install cup-and-handle?

ske-labs/agent-trading-skills/cup-and-handle

$npx -y skills add SKE-Labs/agent-trading-skills --skill cup-and-handle

Installs into the current project.

Summary

Define and test cup-and-handle breakout shapes. Use when measuring a rounded base, handle depth, lip break, retest, invalidation, and measured-move hypothesis without inferring accumulation.

Files · 1

View on GitHub

SKILL.md

1	# Cup and Handle Pattern
2
3	A conventionally bullish continuation shape. Treat its geometry, breakout direction, and measured move as testable hypotheses rather than evidence of accumulation.
4
5	## Pattern Structure
6
7	### The Cup
8	- Price rounds down from resistance, forms a "U" shaped bottom (not "V"), rises back to resistance
9	- Duration and symmetry are market- and timeframe-specific; define minimum and maximum bars before scanning
10
11	### The Handle
12	- Small pullback from resistance into a declining flag/pennant
13	- Define handle depth as `(lip - handle_low) / (lip - cup_low)` and reject only at a pretested threshold
14	- Require the handle to remain above the cup midpoint only if that rule is part of the frozen specification
15
16	\| Factor \| Preferred seed definition \| Alternative to test \|
17	\|--------\|-------\|------------\|
18	\| Cup shape \| Rounded "U" \| Slightly V-shaped \|
19	\| Handle depth \| Shallow relative to cup \| Predeclare a tested maximum \|
20	\| Volume \| Decreasing in handle \| Stable \|
21
22	## Workflow
23
24	### 1. Get Exact Data
25
26	```
27	get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<cup_bottom_date>)
28	```
29
30	### 2. Mark Key Structure
31
32	Cup lip (resistance level where both sides of the cup meet):
33
34	```
35	draw_chart_analysis(action="create", drawing={
36	"type": "resistance",
37	"points": [
38	{"time": <left_lip_time>, "price": <lip_price>},
39	{"time": <right_lip_time>, "price": <lip_price>}
40	],
41	"options": {"text": "Lip"}
42	})
43	```
44
45	Cup bottom:
46
47	```
48	draw_chart_analysis(action="create", drawing={
49	"type": "highlight",
50	"points": [{"time": <bottom_time>, "price": <bottom_price>}],
51	"options": {"text": "Cup Low"}
52	})
53	```
54
55	Handle boundaries (2 converging or parallel trend lines):
56
57	```
58	draw_chart_analysis(action="create", drawing={
59	"type": "trend",
60	"points": [
61	{"time": <handle_high1_time>, "price": <handle_high1>},
62	{"time": <handle_high2_time>, "price": <handle_high2>}
63	],
64	"options": {"text": "Handle R"}
65	})
66
67	draw_chart_analysis(action="create", drawing={
68	"type": "trend",
69	"points": [
70	{"time": <handle_low1_time>, "price": <handle_low1>},
71	{"time": <handle_low2_time>, "price": <handle_low2>}
72	],
73	"options": {"text": "Handle S"}
74	})
75	```
76
77	### 3. Enter
78
79	Standard: Enter on break above cup lip with volume spike. Stop below handle low.
80	Aggressive: Enter as handle finds support. Tighter stop, higher risk.
81	Conservative: Wait for breakout + retest of lip (now support).
82	Target: Breakout level + cup depth (lip to bottom distance).
83
84	## Evidence and Validation
85
86	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
87	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
88	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
89	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
90	- Research basis: [Lo, Mamaysky & Wang](https://www.nber.org/papers/w7613) supports testing objectively defined chart patterns, not assuming that a named shape has a universal measured-move edge.
91
92	## Key Rules
93	- NEVER enter before the handle forms — cup alone is incomplete
94	- Treat a break below the cup midpoint as structural invalidation only when the chosen specification says so
95	- Measure relative volume during the handle and breakout; do not require an untested universal multiple
96	- Failure at lip on second attempt = potential double top, not cup and handle
97
98	## Related Skills
99	- flag-pennant — The handle is essentially a small flag
100	- double-top-bottom — Failed cup breakouts can become double tops

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6 picks

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