This blog briefs about the Descending triangle chart patterns often observed in stock market trading.
DESCENDING TRIANGLE :
The descending triangle is the contrary of the Descending triangle. It signals the upcoming bearish trends in the market, suggesting the price would trend downwards over the completion of this pattern. This descending triangle is formed by a flat support line and a downward slope resistance line. Like the Descending triangle, this pattern is usually considered to be a continuation pattern, as it is headed by a downward trend line. But again, it can be found in an uptrend.
The first part of this pattern is the fall to a low that then finds a support level, which sends the price to a high. The next move is a second test of the previous level of support, which again sends the stock higher – but this time to a lower level than the previous move higher. This is repeated until the price is incapable to hold the support level and falls below, continuing the downtrend.
This pattern shows that buyers would take the security higher, butcontinue to face resistance. After several attempts to push the stock higher, the buyers fade and the sellers overpower them, which sends the price lower.
Source : https://www.globalmarketastro.com/blog/descending-triangle-chart-patterns/
DESCENDING TRIANGLE :
The descending triangle is the contrary of the Descending triangle. It signals the upcoming bearish trends in the market, suggesting the price would trend downwards over the completion of this pattern. This descending triangle is formed by a flat support line and a downward slope resistance line. Like the Descending triangle, this pattern is usually considered to be a continuation pattern, as it is headed by a downward trend line. But again, it can be found in an uptrend.
The first part of this pattern is the fall to a low that then finds a support level, which sends the price to a high. The next move is a second test of the previous level of support, which again sends the stock higher – but this time to a lower level than the previous move higher. This is repeated until the price is incapable to hold the support level and falls below, continuing the downtrend.
This pattern shows that buyers would take the security higher, butcontinue to face resistance. After several attempts to push the stock higher, the buyers fade and the sellers overpower them, which sends the price lower.
Source : https://www.globalmarketastro.com/blog/descending-triangle-chart-patterns/
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