Key facts: When it occurs, the price is said to follow the trend proportional to the size of the cup. The platform also added the detection of its inverted version. TradingView adds a new pattern, the “cup & handle” pattern, with the automatic detection function. Once this pattern is activated in the “technical data” section, the platform automatically analyzes its presence or absence on the chart. This new pattern joins others such as double bottom, double top, pennants and more that work thanks to automated detection. As TradingView assures:
A cup and handle is a trend continuation pattern, which is a U-shaped trend correction: a cup and another smaller movement immediately after it, a handle. The handle can also be U-shaped or presented as a trend line. It is believed that after the handle is broken, the price will go further in the direction of the trend at least to the height of the cup. TradingView, market analysis platform.
The platform also allows automatic detection of its bearish version: the inverted handle rate. At the time of writing, the new indicators are in beta and are only available to users with Premium subscriptions or higher.
TradingView is a highly reputable market analysis platform. Source: TradingView At the time of writing, TradingView detects a cup-with-handle pattern in the bitcoin chart on a weekly basis.
The new pattern detected possible increases in the price of bitcoin on the weekly chart. Source: TradingView According to this detection, the price would reach a level close to $120,000 per unit. This would leave the price of bitcoin in a range similar to that predicted by other analysts who also talk about these figures. In accordance with this, TradingView also detects a bullish flag on the weekly time frame, which is also a good sign for the price.
Automatic detection of all patterns at the same time
A striking aspect of this TradingView functionality is that it is capable of collecting and analyzing data that indicates the simultaneous presence of some or all of the indicators programmed into the platform. When activated, it attempts to simultaneously identify the presence of bearish and bullish flags, floors and ceilings, Elliot waves, heads and shoulders, rectangles, triangles and wedges. This tool is usually able to detect the inverted version of each of the patterns mentioned.