Three outside down
BearishA bearish engulfing bar followed by one more bar closing lower — confirmation that the engulfing was not a single-day move
Most patterns resolve their way only 50–60% of the time — nearly half miss.
Textbook shape
How to read it
A bearish engulfing bar swallows the prior green body, then one more bar closes lower — confirmation that the engulfing was not a one-day affair.
It carries more weight at the end of an advance; the same shape deep in a decline is hard to separate from ordinary chop.
Real example
US stockBYNDDaily
Completed 2025-10-07
CryptoSOL-USDDaily
Completed 2022-11-01
A window SQMATE's detectors actually flagged in past bars. It records a day that worked out — the same shape doesn't always resolve the same way.
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.