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canslimTechnical

Stock pattern recognition of cup and handle patterns

This project is used to implement various stock pattern recognition mechanisms. Focus is on implementing algorithms to identify the cup and handle pattern as popularised by William O' Neil in his CANSLIM approach to stock picking.

The codes are based on the following papers:

  1. http://web.mit.edu/people/wangj/pap/LoMamayskyWang00.pdf
  2. ftp://80.240.216.180/Transmission/%D0%A4%D0%B0%D0%B9%D0%BB%D1%8B/S&C%20on%20DVD%2011.26/VOLUMES/V16/C10/077CUP.pdf

Cup and handle pattern

Rules for cup and handle patterns

Bandwidth for kernel regression = 3.

Between points K and A

  1. p.a > 30, p.a >= 1.15*p.k
  2. uprv1/dprv1 > 1

Between points A and B

  1. p.b < 0.85p.a, p.b >= 0.65p.a
  2. avg.vol < avg.ma.vol
  3. Length of left side of cup 20 to 60 days

Between points B and C

  1. p.c > 0.6p.a + 0.4p.b & p.c <= p.a
  2. uprv2/dprv2 > 1
  3. Length of right side of cup 3 to 30 days

Between points C and D

  1. p.d <= p.c
  2. uprv2/dprv3 > 1
  3. Length of right side of cup 3 to 20 days