What is the Descending Triangle?
The Descending Triangle is a multiple candlestick chart pattern that signifies the continuation of a downtrend. This is a Descending Triangle, as it is shaped like a triangle pointed downwards.
- Descending Triangle is a multiple candlestick chart pattern.
- It is a bearish trend continuation chart pattern.
Understanding the Descending Triangle
The Descending Triangle consists of multiple candlesticks. The first candlestick is bearish and indicates the continuation of a downtrend. The next few candlesticks are bullish and form the shape of a triangle pointed downwards. The final candlestick is also bearish and indicates that the market has once again been taken over by the bears.
How To Trade Descending Triangle?
Once when you detect the pattern at your charts you should consider to open sell position. Open sell when price close below bottom line (red doted line). Place your stop lose above last price high (see image above)
The most similar pattern is the Ascending Triangle