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Inverse Cup and Handle Scanner



Inverse Cup and Handle Scanner

What is Inverse Cup and Handle?

Inverse Cup and Handle is a bearish continuation or reversal pattern that forms after a downtrend or during a corrective rally. It resembles an upside-down cup followed by a small upward consolidation (handle), indicating weakening buying pressure and potential continuation of the bearish move after breakdown.

How the Inverse Cup and Handle Pattern Forms

  • Price declines sharply, forming the left side of the inverse cup.
  • A weak recovery occurs, forming a rounded bottom (inverted cup).
  • Price stalls and forms a small upward consolidation (handle).
  • Buyers fail to sustain momentum above resistance.
  • A breakdown below the handle confirms bearish continuation.

Trading Strategy

  • Wait for a confirmed breakdown below the handle support.
  • Enter short positions after breakdown confirmation.
  • Place stop-loss above the handle high.
  • Measure cup depth to estimate downside target.
  • Use volume spike on breakdown for stronger confirmation.

Advantages

  • Helps identify high-probability bearish continuation setups.
  • Provides structured entry, stop-loss, and target levels.
  • Works well in trending and volatile markets.
  • Useful for swing, and positional trading.

TSR Scanner Features

  • Real-Time Alerts: Detects breakdown from handle zone instantly.
  • Fine-Tune Filter: Combine with volume and TSR strength index for accuracy.
  • Custom Tracking: Monitor selected stocks or watchlists.
  • Backtesting Capabilities: Evaluate historical inverse cup patterns.
  • Flexible Timeframes: Works across multiple chart intervals.
  • Auto Refresh: Keeps scanner updated continuously.

Fine Tune : You can customise these screeners by clicking on 'Fine Tune Filter' Option

Caution : All these screeners are crafted based on some historical scenarios which may / may notbe applicable here. We recommend to fine tune them according to current market conditions or seek expert advise before taking any decision.
Cup and Handle Inverse
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