The descending triangle trading strategy has clear exit and entry rules. You can come across a descending triangle in any type of financial market: stock market, Forex, crypto market, commodity, and others.Ī descending triangle is a bearish pattern that signals the continuation of a downward trend.Ī descending triangle pattern is the opposite of a bullish ascending pattern. When a descending triangle pattern completes in the price chart, the bears break out the lower border of the pattern, and the price continues declining. The feature of a descending triangle is its long construction from level to level, indicating the weakening of bulls in the market. Clearer outlines of the descending triangle can be seen on the timeframes starting from H4 and longer. The pattern looks like a triangle with falling highs and a flat support level after a major downward movement. However, the formation can also emerge in a bullish trend, signaling a price reversal down. Descending Triangle Measuring TechniqueĪ descending triangle is a bearish pattern that most commonly occurs in a downtrend.How to Identify a Descending Triangle Pattern.What Does a Descending Triangle Tell You?.The article covers the following subjects: Read on, and you will learn how to identify descending triangles in the chart and trade them to make profits. One of the patterns signaling a trend beginning is a descending triangle formation covered in this article. Here, one can use different candlestick chart patterns of both trend reversal and continuation. However, it is not always easy to spot the trend beginning as the market is often unpredictable. According to most professionals, trading with the trend is the only effective way to get the maximum possible profit with minimum risks. To earn a stable income, you need to determine the beginning of a trend correctly. The priority for a trader working in financial markets is profitable trading and investment.
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