Cup & Handle Origin
A stock that crawled along the bottom for a long time steps back above its long-term moving average on strong volume — the start of a cup-shaped recovery. The win rate is about half, so it is not often right, but completed cups can run far, and falling back below the line is a quick stop. The payoff, not the hit rate, is what earns here.
Wins on payoff, not hit rate — the win rate is a coin flip, but the stop (a close back below the broken long-term moving average) is tight and completed cups run far
SQ Signal 5
Caught today
Real cases — entry and what followed
winnerMadrigal Pharmaceuticals Incbought 2022-12-05
winnerLightbridge Corpbought 2024-10-08
winnerPenguin Solutions, Inc.bought 2026-04-10
loserCan Fite Biopharma Ltd ADRbought 2015-03-23
Winning and losing cases side by side — nothing was hidden. These aren't the top returns; they're the cases where the pattern the algorithm caught is actually visible. Price is indexed to 100 at the buy, shown from when the pattern formed.
Want a heads-up next time?
We'll email the stocks this signal catches after the close.
Observational information on how closely a chart resembles a textbook shape. The number is similarity, not probability, and a signal does not guarantee the move. Indicator values are plain arithmetic anyone can repeat, but meeting a condition is not a forecast. Not investment advice.