First Candle Volume Break: Bearish
Selling-side version of the First Candle Volume Break: the latest completed candle is red, closes BELOW the first candle's low, out-trades the first candle and runs at 3x or more of the stock's own typical volume for that time of day. Flags where sellers are driving a genuine volume surge. Back-test (5m and 15m, 14 months): the following hour's move was about 15-30% larger than normal on average, but shorting such signals into the close lost about 3-5 bps - use it as a watch-list, not a stand-alone entry.
About This Scan
This is the selling-side view of the first candle volume break. A stock qualifies when its current candle is red, closes below the low of the session's first candle, trades more volume than that first candle, and runs at 3x or more of its own typical volume for that time of day. Together these show sellers overwhelming the opening range with unusual force. Switch to 5m, 15m or 1h to match your trading speed; on the daily interval the benchmark is the first trading day of the month.
Scan Rules
Stock passes all of the below filters in the ALL segment using 5M candles:
- 1.Volume Vs First Candle greater than 1
- 2.Volume vs Same-Time Average (x) greater than or equal to 3
- 3.Traded Value (Rs lakh) greater than or equal to 500
- 4.Price vs First Candle Low % less than 0
- 5.Close less than Open
How To Use This Scan
- •Treat the list as a watch-list: in our 14-month back-test (5m and 15m), shorting these signals into the close lost about 3-5 bps on average, even though the following hour's moves were about 15-30% larger than normal.
- •Be careful chasing the surge candle itself; a failed break back above the first candle's low is a common warning.
- •Sort by Latest Vol / Typical Vol to see the most unusual activity first.
Frequently Asked Questions
What is a bearish first candle volume break?
A red candle closing below the first candle's low with more volume than the first candle and well above the stock's usual volume for that time of day.
Is it a sell signal?
No. It flags strong selling interest. Back-testing found that shorting such candles into the close lost money on average, so use it as context, not a stand-alone trade.