# Cup and handle Help!

#### Argo

##### New Member
Hello,

I found an AFL (in Amibroker) and a correction for "cup and handle", but something is wrong. It is said "warning 505. Division by zero. Divisor array at [1] is equal zero." Can someone help me, what is wrong, how can I correct it?

Thank you

AFL:

// Cup and Handle exploration written by Jerry Tyliczka
//
//
//
// This code calculates the Alpha, Delta, Beta and Gamma values
// but they are not used in the filter criteria as specified
// by the article which this code was based on.
//
// Look for additional changes as I tweak the below code.
// I will also include Scan feature and Backtesting in future release.
//
//

MinPrice=20;
MinVolume=100000;

//Left side of Handle formation can occur anywhere from 2-25days - look at the
//last 25 bars AND get the number of bars since condition met.

LH=HHV(Close,25); // Highest close past 25 days.
BLH=HHVBars(Close,25); // Tells us # of bars that have past since high reached.
//Used to determine Lowest bar.

BH=LLV(Close,BLH); // Lowest close since the highest value was reached/
BBH=LLVBars(Close,BLH); // number of bars that have past since lowest value.

NBLH=BLH-BBH; // this is the number of bars in the formation of the left side
//handle. NBLH must be atleast 2 to be a valid handle formation.

// Now lets get the cup formation. Cup formation can occur anywhere from 23 to
//145 days. The left side of the cup can be from 20-120 days AND the right side
//can be anywhere from 3-25 days.

// get the right side of the cup(low).

BC=LLV(Close,BLH+25); // look at 25 bars since the left side of handle.
BBC=LLVBars(Close,BLH+25);

// get the left side of the cup.

LC=Ref(HHV(Close,120),BBC*-1);
BLC=Ref(HHVBars(Close,120),BBC*-1);

// Get highest value before left side of cup started to form.

KC=Ref(HHV(Close,30),BLC*-1);
BKC=Ref(HHVBars(Close,120),BLC*-1);

Delta= LC/KC;

//Calculate the up/down relative price value during time frame RC (Right Cup
//Formation)

URPV=DRPV=0;
i=EndValue(BLH);
j=EndValue(BBC);
do
{
URPV =
IIf(Ref(Close,i*-1)>Ref(Close,(i+1)*-1),Ref(Volume,(i*-1))*Ref(Close,(i*-1))-Ref(Close,(i+1)*-1),URPV);
DRPV =
IIf(Ref(Close,i*-1)<Ref(Close,(i+1)*-1),Ref(Volume,(i*-1))*Ref(Close,(i+1)*-1)-Ref(Close,(i*-1)),DRPV);
i++;
} while (i<j);
Alpha = URPV/DRPV; // Should be >1

// Calculate Beta

DRPV=0;
i=EndValue(BBH);
j=EndValue(BLH);
do
{
DRPV =
IIf(Ref(Close,i*-1)<Ref(Close,(i+1)*-1),Ref(Volume,(i*-1))*Ref(Close,(i+1)*-1)-Ref(Close,(i*-1)),DRPV);
i++;
} while (i<j);
Beta = URPV/DRPV;
Gamma = log(Alpha) + log(Beta) + delta;

// Filter Criteria as follows:
// 1. Right side of handle must be at least 2 bars. NBHL>2
// 2. Bottom of the cup must be lower than the left top of the cup.
// 3. Left handle must be lower than or equal to the lect cup formation.
// 4. Bottom of the cup must be less than the left handle.
// 5. Bottom of the handle must be > 80% of the left handle + 20% of the bottom
//cup.
// 6. Start of cup/handle formation must be greater than precedding chart
//value. LC>LC
// 7. Minimum price and volume you can set any way you like.

Filter= NBLH>2 AND Close>BH AND BC<LC AND LH<=LC AND BC<LH AND BH<LH AND
BH>.8*LH+.2*BC AND KC<LC AND Close>MinPrice AND MA(Volume,30)>MinVolume;

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