Lower Highs and Lower Lows (3 Candles)
Three candles in a row with a lower high and a lower low than the one before, inside a trend (20 EMA below 50 EMA, price below the 20 EMA) on 1.2x volume. A clean staircase down. Liquid stocks only (Rs 5 Cr+).
About This Scan
A series of lower highs and lower lows is the textbook definition of a downtrend. This scan checks three candles in a row: each has a lower high and a lower low than the one before. It also requires a trend behind the staircase (20 EMA below the 50 EMA, price below the 20 EMA), volume at least 1.2 times the stock's average and Rs 5 Cr of last-session turnover. The mirror scan is Higher Highs and Higher Lows (3 Candles).
Scan Rules
Stock passes all of the below filters in the ALL segment using 1D candles:
- 1.High less than 1 candle ago High
- 2.1 candle ago High less than 2 candles ago High
- 3.Low less than 1 candle ago Low
- 4.1 candle ago Low less than 2 candles ago Low
- 5.EMA 20 less than EMA 50
- 6.Close less than EMA 20
- 7.Relative Volume greater than or equal to 1.2
- 8.Traded Value (Rs lakh) greater than or equal to 500
Last Session Sample
As of 2026-11-06, 13 stocks passed every rule. The 5 below are the strongest movers on the list.
| Symbol | Close | Change vs previous close |
|---|---|---|
| TDPOWERSYS | 576.5 | -13.85% |
| VIDYAWIRES | 67.8 | -7.99% |
| ELLEN | 290.1 | -7.26% |
| UNIVCABLES | 1098.8 | -6.49% |
| APTUS | 174.88 | -2.81% |
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How To Use This Scan
- •The structure breaks when a candle makes a higher high. Yesterday's high is a clear stop reference.
- •Three candles down can mean a stock is already stretched. Look for the next small bounce that fails at a lower high instead of selling the third candle.
- •Combine it with a level, such as a break of a 20-day low. This scan has not been back-tested for an edge.
Frequently Asked Questions
What are lower highs and lower lows?
Each swing high is below the previous one and each swing low is below the previous one. It shows sellers accepting less at every step.
Why check only three candles?
Three is the shortest run that shows a pattern. Use Stocks in Downtrend (5 Days) to see a longer streak of lower closes.
Can I use it on intraday charts?
Yes. Switch the interval to 15m or 1h in the screener. The default is the daily chart.