CMD
▼ Bearish
Streaming Alert (Scanner)
Inverted Check Mark Alert (CMD)
By Daniel Mirkin, CEO, Trade Ideas. Updated October 2026.
Find stocks forming an inverted check mark: lower lows, a bounce, then even lower lows, in real time, with Trade Ideas Streaming Alerts (Scanner). An inverted check mark is lower lows, then a bounce, then even lower lows. It is the bearish mirror of the check mark and is based on daily highs and lows.
Know when the pattern finishes.
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Streaming Alerts show a inverted check mark the moment it completes, not on the next refresh.
How Trade Ideas finds it: by default, the inverted check mark alert will be triggered when a stock exhibits a distinctive inverted checkmark continuation pattern—characterized by an initial downward surge, a subsequent run-up, and finally, a reinforced downward movement. See Trade Ideas plans and pricing to run it live.
What is a inverted check mark?
An inverted check mark is a lower low, a bounce, and then an even lower low. It is the check mark turned upside down.
Traders read it as a downtrend that paused and then kept going.
Parts of a inverted check mark
Push down
Sellers drive it to a fresh intraday low.
Bounce
Price lifts for a bit as shorts cover or buyers test the water.
Lower low
Sellers take it below the earlier low. The inverted check mark is complete.
How traders use it
Step 1: Let the Trade Ideas alert find it
Turn on the Inverted Check Mark alert (CMD). Like the check mark, it only fires during regular hours and not in the first three minutes. See it live in the Web Dashboard.
Step 2: Wait for the trigger
Key point
The new low under the bounce is the signal. Some wait to see that the bounce high is not reclaimed.
Step 3: Entry
Short sellers may enter on the new low. Holders often use it to cut or reduce a position.
Step 4: Exit
A stop above the bounce high is a common choice for shorts. That is how many traders frame it, not advice.
Tips
- Check that the stock can be borrowed before planning a short.
- Weak bounces before the new low show sellers in control.
- Gap-down days produce many of these.
- The bullish version is the Check Mark alert (CMU).
Past results, including backtests, are not indicative of future results.
How the Inverted Check Mark alert works
The inverted check mark pattern is defined as a lower low followed by a move upwards followed by even lower lows. This pattern is most commonly seen as a continuation pattern.
Key point
This pattern is based on daily highs and lows. The exchanges report highs and lows almost exclusively during market hours, so these alerts rarely if ever occur after market. We never report this alert before the open or in the first three minutes after the open. The last part of the check mark must happen at least three minutes after the open.
Default settings
By default, the inverted check mark alert will be triggered when a stock exhibits a distinctive inverted checkmark continuation pattern—characterized by an initial downward surge, a subsequent run-up, and finally, a reinforced downward movement.
What the alert shows you
The description column will give you more details on this alert.
Related alerts
Filters to pair with the Inverted Check Mark alert
Categories
FAQ
How do I find stocks with a bearish check mark pattern?
Turn on the Inverted Check Mark alert (CMD) in Trade Ideas Streaming Alerts. By default, the inverted check mark alert will be triggered when a stock exhibits a distinctive inverted checkmark continuation pattern—characterized by an initial downward surge, a subsequent run-up, and finally, a reinforced downward movement.
What is the Inverted Check Mark alert?
An inverted check mark is lower lows, then a bounce, then even lower lows. It is the bearish mirror of the check mark and is based on daily highs and lows.
What is the opposite of the Inverted Check Mark alert?
What is an inverted check mark?
A lower low, a bounce, and then an even lower low. It points to a downtrend continuing.
Is the inverted check mark bearish?
Yes. It is a bearish continuation pattern.
Why does the alert not fire at the open?
It is based on daily highs and lows, and Trade Ideas skips the first three minutes after the open.
Can I use it without shorting?
Yes. Many traders use it as a warning to sell or avoid a stock.