Move cursor over the icon or click on it to see technical
indicators and trend details.
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| Chart Analysis and Chart Pattern Recognition – Descending Triangle Pattern |
The descending
triangle is a variation of triangle formation that has a flat support line and
falling resistance line. The lower highs indicate the decreasing demand and
give the descending triangle definitive bearish bias. The descending triangle
usually represents a distribution stage in bearish market. The descending
triangle is considered as continuation pattern especially in down trend, but it
may also mark a reversal in uptrend. Volume usually increases on trend support resistance breakout.
After breakout (similar to rectangle) support may tern into potential
resistance and visa versa. Descending Triangle Screening page presents a list of stocks forming Descending Triangle Pattern.
Tips:
# 1 As continuation pattern descending triangle usually appears within
the young trend characterizes by natural long-term indicators and oversold
short-term indicators. Descending triangle reset short-term indicators to
natural and then continue movement in parents direction.
# 2 As reversal formation descending triangle appears in mature uptrend
characterized by oversold long-term and short-term indicators. This situation
usually generates bearish divergence on long-term indicators.
# 3 For the best results chart pattern should be considered together with other technical analysis signals and technical trading techniques.
Estimated Target: the main trend support/resistance level. line. |
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| See also: How to use the Analysis page.
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