The Cup-With-Handle Search Algorithm

OUTPUT TABLE COLUMNS

Copyright © Haiku Laboratories 2009

Updated March 2010

Column	Description
Date	Last date scanned (Point D)
Close	Prior day’s closing price
Volume	End-of-day volume in thousands of shares (K-shares)
Rank	The sum of the log ratios R1+R2+R3
R1	Log ratio of the up-relative-price-volume to down-relative-price-volume in Frame 3 (cup right-side)
R2	Log ratio of the up-relative-price-volume to down in Frame 3 (cup right-side) to down-relative-price-volume in Frame 4 (handle)
R3	Log ratio of the up-relative-price-volume to down in Frame 3 (cup right-side) to 50 day average relative-price-volume
PVR	Pivot ratio, or Handle Height – The location of the pivot point (Break Out Price) as a percentage of peak at the left side of the cup, both relative to the cup bottom.
K-A	Setup length (2 to 60 days) – the number of days between Point A and and point K, the low point preceeding cup formation.
B-C	Frame 3 (cup right-side) length (3-25 days). The run up to the pivot point, requiring increased up-volume.
C-D	Handle Length (2 to 30 days) – The number of days between today and the day of the cup’s Pivot Point.
A-D	Cup length (20 to 160 days) – the number of days between the cup’s pivot point and the previous high defining the cup’s structure (at Point A).
Score	Number of finds, or the rejection criterion code
BOP *	Break Out Price = The Pivot Price (at Point C).  This is the intraday high at the right side of the cup.  (Also know as the resistance point.)  In the CANSLIM system, a stock must pierce this price on sufficient volume in order to qualify for purchase
BOV *	Minimum Breakout Volume – 150% of the 50 day average volume, in thousands of shares.  When a stock pierces the breakout price, this is the minimum end-of-day volume necessary to qualify it for purchase.

* Not Shown