1. Trend: In order to qualify as a continuation pattern, an established trend should exist. However, because the descending triangle is definitely a bearish pattern, the length and duration of the current
trend is not as important. The robustness of the formation is paramount.
2. Lower Horizontal Line: At least 2 reaction lows are required to form the lower horizontal line. The lows do not have to be exact, but should be within reasonable proximity of each other. There should
be some distance separating the lows and a reaction high between them.
3. Upper Descending Trend Line: At least two reaction highs are required to form the upper descending trend line. These reaction highs should be successively lower and there should be some distance
between the highs. If a more recent reaction high is equal to or greater than the previous reaction high, then the descending triangle is not valid.
AdityaSubramanyam
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@apborsadiya, But the lower edge is not horizontal. If we treat it as horizontal, there is no low towards the left. I am a bit confused
Fibonacci_Club
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@AdityaSubramanyam, why you need a low find a resistance area
Or triangles are a continues pattern so after break out enter in a trade
AdityaSubramanyam
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@apborsadiya, but you mentioned that "Lower Horizontal Line: At least 2 reaction lows are required to form the lower horizontal line. The lows do not have to be exact, but should be within reasonable proximity of each other. There should be some distance separating the lows and a reaction high between them. ". We need to reaction lows right, hence asking
it's a Descending triangle
1. Trend: In order to qualify as a continuation pattern, an established trend should exist. However, because the descending triangle is definitely a bearish pattern, the length and duration of the current
trend is not as important. The robustness of the formation is paramount.
2. Lower Horizontal Line: At least 2 reaction lows are required to form the lower horizontal line. The lows do not have to be exact, but should be within reasonable proximity of each other. There should
be some distance separating the lows and a reaction high between them.
3. Upper Descending Trend Line: At least two reaction highs are required to form the upper descending trend line. These reaction highs should be successively lower and there should be some distance
between the highs. If a more recent reaction high is equal to or greater than the previous reaction high, then the descending triangle is not valid.