Descending Scallop Chart Pattern – School
What is the Descending Scallop
The Descending Scallop is a multiple candlestick chart pattern that indicates that a bearish continuation is taking place. This pattern forms close to the peak of a downtrend in the market.
Understanding the Descending Scallop
The Descending Scallop is a candlestick pattern that consists of multiple candlesticks. The first candlestick is bearish and indicates that the market is in a downtrend. The next few candlesticks reveal a slight market retracement before climbing back down into another bearish candlestick. This slight retracement forms the shape of a scallop and is where this pattern got its name.
How to Trade Descending Scallop Chart Pattern
After price broke support (bottom horizontal red line) we can open sell position. The take profit should be above pattern, for more info check image above.