Candlestick formation · Bearish
What is it, in one line
A bearish engulfing confirmed by a third red close.
Bearish · 3 candles · verdict: rule and thresholds below
A bearish engulfing confirmed by a third red close. The engine checks the formation as an executable condition over open, high, low and close, with a trend filter applied before the count is kept.
Method
The mirror: a bearish engulfing followed by a third down candle closing below the second candle’s close.
The traditional claim
Traditionally read as a confirmed bearish engulfing.
How this detection is wrong
Contains a bearish engulfing by construction.
Published so the count can be reproduced. Every figure below is a parameter of the rule, not a preference: change one and the occurrence count changes with it.
| Parameter | Meaning | Default |
|---|---|---|
| trendPeriod | bars of prior trend inspected | 5 |
| minPriorSlope | prior slope must be above | 1 |
| minPriorBodyAtr | the preceding body, at least, in ATR | 0.3 |
| atrPeriod | bars of ATR used to size everything below | 14 |
These share enough geometry that a detector can return more than one of them on the same bar. The engine reports every match rather than picking a winner.
Every pair on the site that can be mistaken for another, and what separates each: the look-alikes index.
The mirror: a bearish engulfing followed by a third down candle closing below the second candle’s close. The detector also requires a prior uptrend, so the same shape in the wrong context is not counted.
It is read as bearish. Traditionally read as a confirmed bearish engulfing.
Contains a bearish engulfing by construction.
As an executable rule over open, high, low and close, with 4 named parameters — including bars of prior trend inspected 5, prior slope must be above 1, the preceding body, at least, in ATR 0.3 — all published on this page so the count can be reproduced. Strict and loose variants are defined as well, so the sensitivity of the count to those thresholds is visible rather than assumed.
Measurement pending re-run
No hit rate is published here yet. The run that would supply one was computed on engine ca6d9e36c81c; the engine is now cfb08765de7c. Its candlestick rows included the still-forming bar, and it predates the chart formations entirely, so those figures have been withdrawn rather than published with a caveat. The definition above is unaffected: it is what the detector tests, and no re-run changes it.
Same shape, opposite reading
The shapes are close, and the prior trend is what decides which one fired: this rule requires a preceding uptrend, its mirror a preceding downtrend.
Three Outside Up: A bullish engulfing, then a third candle closing above the second.