Descending Triangle Pattern
The descending triangle is typically a bearish continuation pattern characterized by a flat lower support line and a downward-sloping resistance line. It shows sellers becoming more aggressive while buyers hold a fixed support level.
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Trading Tips
- ✓Enter on breakdown below support with volume
- ✓Stop-loss above the last swing high
- ✓Target is pattern height subtracted from breakdown point
- ✓Be prepared for false breakdowns
Signal Strength & Reliability
Descending triangles break downward approximately 70% of the time. The pattern is most reliable when it appears during a downtrend as a continuation pattern. Upward breaks can occur and should be traded accordingly.
Descending Triangle FAQs
Common questions about the descending triangle pattern
While descending triangles typically break downward (70% of cases), they can break in either direction. The pattern is more reliable as a bearish continuation in an existing downtrend. Always wait for actual price action confirmation.
For a downward break, enter short when price closes below support with increased volume. Set stop-loss above recent swing high. Target is the pattern height (measured at widest point) projected down from the breakdown.
In a descending triangle, one line is horizontal (support). In a falling wedge, both lines slope downward (converging). Falling wedges are typically bullish reversal patterns, while descending triangles are typically bearish continuation.
Related Patterns
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Disclaimer: Charted provides technical analysis for educational purposes only. This is not financial advice. All trading involves risk. Always consult a licensed financial professional before making investment decisions.
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