How to Trade a Descending Triangle
Descending triangle pattern is a type of chart pattern often used by technicians in price action trading. The descending triangle chart pattern forms at the end of a downtrend or after a correction to the downtrend. The descending triangle pattern is the opposite of the ascending triangle pattern. This pattern is known as the bearish triangle descending pattern.
Chart technicians can make use of the descending triangle pattern in order to trade potential breakouts.
Contrary to popular opinion, a descending triangle can be either bearish or bullish. Traditionally, a regular descending triangle pattern is considered to be a bearish chart pattern. However, a descending triangle pattern can also be bullish. In this instance it is known as a reversal pattern.
Descending triangle stock pattern can be viewed as either a continuation pattern or a reversal pattern. The triangle continuation pattern is your typical bearish formation. This pattern occurs within an established downtrend.
On the other hand, a descending triangle breakout in the opposite direction becomes a reversal pattern.
A very important fact to bear in mind when trading the descending triangle is that, it is very subjective. Therefore if you are new trading the descending triangle stock pattern, you need to have a lot of practice. Familiarizing oneself with the triangle pattern trading can allow the trade to build their own custom triangle trading strategies.
Descending triangle pattern is a type of chart pattern often used by technicians in price action trading. The descending triangle chart pattern forms at the end of a downtrend or after a correction to the downtrend. The descending triangle pattern is the opposite of the ascending triangle pattern. This pattern is known as the bearish triangle descending pattern.
Chart technicians can make use of the descending triangle pattern in order to trade potential breakouts.
Contrary to popular opinion, a descending triangle can be either bearish or bullish. Traditionally, a regular descending triangle pattern is considered to be a bearish chart pattern. However, a descending triangle pattern can also be bullish. In this instance it is known as a reversal pattern.
Descending triangle stock pattern can be viewed as either a continuation pattern or a reversal pattern. The triangle continuation pattern is your typical bearish formation. This pattern occurs within an established downtrend.
On the other hand, a descending triangle breakout in the opposite direction becomes a reversal pattern.
A very important fact to bear in mind when trading the descending triangle is that, it is very subjective. Therefore if you are new trading the descending triangle stock pattern, you need to have a lot of practice. Familiarizing oneself with the triangle pattern trading can allow the trade to build their own custom triangle trading strategies.
Trade closed: target reached