How Do I Analyze Descending Triangle Chart Pattern?
How to Analyze Descending Triangle Chart Pattern
Falling Wedge Pattern
The descending triangle pattern is formed in a downwards trend & this descending triangle chart pattern signals that the downward trend direction of price movement is going to continue.
Falling triangle chart pattern signals that there is a price support area that the sellers keep pushing - every time moving this price support level lower - & once this price support area breaks - the price will continue moving downward.
The descending triangle chart pattern support level temporarily prevents the price from declining & moving lower, while the descending sloping line above the descending triangle chart pattern signals that sellers are still present.
A downside price penetration of the lower line of the descending triangle chart pattern is interpreted as a sell signal for price breaking out downward from a descending triangle chart pattern - this indicates the downwards trend will continue & selling will follow.
Falling triangle chart pattern is found within a downwards trend - descending triangle chart pattern forms as a consolidation period within the downwards trend & this descending triangle chart pattern signals a downside trend continuation will follow.
How Do I Interpret Descending Triangle Chart Pattern
The price formed a descending triangle chart pattern during its downwards trend which led to further selling after a price breakout downwards and a continuation of the downwards trend.
The sell signal is generated when the price breaks out the lower horizontal sloping line of the descending triangle chart pattern as selling resumes to push the price lower - continuation of the downwards trend.
Read Descending Triangle Chart Pattern