Downtrend Engulfing
BullishAt a fresh low after a long slide, a green candle swallows the prior red body on the close
Patterns are right about half the time. How far they rose and fell matters more than how often they rose.
Textbook shape
How to read it
Right where a long, trending decline prints a fresh low, the next candle closes green and swallows the prior red body on the close. Even an open inside the prior body earns the name once the close clears that candle's open — in practice 'engulfing' is about where the bar closed, not where it opened.
Where it forms changes the story. An engulfing after a few soft days is an ordinary bounce; one at a fresh low after months of decline asks whether the slide has stopped. This signal marks only the latter, and on the weekly setting it looks for that place on weekly candles.
The record is humble. Across 8,346 US, Korean and crypto tickers on weekly candles, the first week after the signal leaned lower (a negative median), and only large names were roughly level with or slightly above the market's average day 20 to 30 sessions out. Mid and small caps and altcoins did worse than the market.
Above all, it flips year to year: big wins in years the market bottomed, big misses in years the slide continued — this shape is less a stock signal than a bet that the market turns here. The low of the two candles is the floor of the setup, and it was broken within 30 sessions about four times in ten.
On SQMATE
No more eyeballing charts
You don't have to flip through charts hunting for shapes. Signal watch pings your browser the moment a condition is met, patterns on your watchlist arrive by email, and the screener lists every symbol that matched today.
SQMATE draws the lines
Support lines, trendlines, channels — the lines you need to read a pattern are drawn for you, so no time goes into drawing.
Patterns aren't the whole story
The same shape doesn't always resolve the same way. It's safer to read it together with candles, volume, and market context — news, catalysts, flows.
This pattern, on your own charts
Stop flipping through charts looking for Downtrend Engulfing
Open a ticker and Downtrend Engulfing is already marked — with the channels, support, resistance and trendlines drawn for you, like the chart below. That's the drawing time back, and the day a new one forms you get told.
- The lines are drawn for youChannels, support, resistance and trendlines are already drawn on every ticker and redrawn as each candle lands — no time goes into drawing them.
- Patterns as pictures, not formulasYears of trading turned into pattern algorithms. No formulas to memorize and no code to write — pick the shapes, group them, and that's your scan.
- What matched todayYour scan runs on every ticker each night, so you don't find the setup you missed on a chart next week.
- Alerted the moment it matchesNo need to open the chart every day to check. We send it by email and Telegram when it happens.
Opens right away — no signup, no login. Only alerts and saving need an account.