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Descending Triangle

Actual Success Rates of Ascending and Descending TrianglesActual Success Rates of Ascending and Descending Triangles Here is an analysis of the actual success rates of ascending and descending triangles in trading, based on the information provided: Success Rates Ascending and descending triangles generally have fairly high success rates as continuation patterns: -The ascending triangle has a success rate of approximately 72.77%. -The descending triangle has a slightly higher success rate of 72.93%. These numbers come from a study that tested over 200,000 price patterns over a 10-year period. Factors Influencing Success Several factors can influence the success rate of these patterns: -The trader's ability to execute the strategy correctly -Market conditions at the time the triangle formed -Market liquidity -Overall market sentiment Important Points to Consider -Triangles are considered reliable continuation patterns, especially in trending markets. -The ascending triangle in an uptrend is statistically more reliable than the descending triangle. -To validate the pattern, the price must touch at least twice each of the upper and lower lines. -An increase in volume during the breakout is an important confirmation sign. Strategies to improve the chances of success -Wait for the triangle to fully form before entering a position1. -Confirm the breakout with a close above/below the resistance/support level. -Use additional technical indicators to confirm the signal. -Pay attention to the volume, which should increase during the breakout. Conclusion Although ascending and descending triangles have relatively high success rates, it is important to use them in conjunction with other technical analysis tools and to take into account the overall market context to maximize the chances of success.
COINBASE:BTCUSDEducation
by Le-Loup-de-Zurich
3
NIFTY DESCENDING triangle formationHere is my overview of descending triangle forming in the price levels. WHAT IS DESCENDING TRIANGLE?? Formation: A descending triangle pattern begins to take shape after a prolonged downtrend. Traders and analysts notice a series of lower highs forming as the price of an asset consistently makes lower peaks. These lower highs are often seen as a sign of weakening bullish momentum. Support Level: Simultaneously, a horizontal support level emerges as the price bounces off a particular price point multiple times, creating a horizontal line. This support level represents a significant area of demand, where buyers are willing to step in and prevent the price from falling below that level. Triangle Shape: The pattern takes the form of a triangle as the descending trendline connecting the lower highs and the horizontal support line intersect. The descending trendline acts as a resistance level that keeps pushing the price down. Bearish Bias: The descending triangle pattern suggests a strong bearish bias. As the price continues to make lower highs, it indicates that sellers are in control, and buyers are less willing to bid the price up. The horizontal support level becomes increasingly crucial as a decisive point where traders expect the price to either break down or reverse. Volume Analysis: Volume analysis is essential when considering a descending triangle pattern. Typically, during the formation of this pattern, the trading volume tends to decrease. Lower volume indicates decreased interest in the asset and often precedes a significant price move. Traders often look for an increase in volume when the price breaks below the horizontal support, signaling a stronger confirmation of the bearish trend. Confirmation and Entry Points: The descending triangle pattern is confirmed when the price breaks below the horizontal support level. This breakdown is a bearish signal, and traders often look for this event to initiate short positions or to exit long positions. Entry points are typically just below the support level, and stop-loss orders are usually set just above the horizontal support or the descending trendline. Price Target: To estimate the potential price target after a breakdown, measure the height of the triangle from the highest point (the first lower high) to the horizontal support. Then, subtract this measurement from the breakdown point. This gives you an approximate price target for the downward move.
NSE:NIFTYEducation
by D3ffyDuck
Symmetrical Triangle - Full ExplanationA Symmetrical Triangle is considered a bullish signal, indicating that the current uptrend may continue. It is a bullish continuation pattern. It is a volatility contraction pattern. This means volatility in the market is shrinking and a sign the market is likely to breakout, soon. A Symmetrical Triangle shows two converging trendlines, the lower one is ascending, the upper one is descending. The formation occurs because prices are reaching both lower highs and higher lows. The pattern will display minimum two highs touching the upper (descending) trendline and minimum two lows touching the lower (ascending) trendline. This pattern indicates a phase of consolidation before the prices breakout. The symmetrical triangle pattern is different from a descending or ascending triangle pattern as both triangles’ lower and upper trend lines slope towards the center point. A horizontal upper trendline is formed in ascending triangles that predict a higher breakout. With a descending triangle, a horizontal lower trendline is formed that predicts a lower breakout. Formation Of Symmetrical Triangle Below is the formation of symmetrical triangle Identification a Symmetrical Triangle i) The sides of the triangle slope equally (that’s why it’s symmetrical) ii) The triangle has lower highs and higher lows – at least two of each iii) It looks like a funnel, with the price “squeezing” from the left towards the right iv)The bullish symmetrical triangle should be formed in an ongoing uptrend and the prices should breakout from the upper trend line. Below is the example of the bullish symmetrical triangle formed on the 15 Min chart of NIFTY. We can see how it is formed in an ongoing uptrend and prices breakout from the upper trend line in the direction of the prior trend. Entry Entry can be done after the breakout. Sometime, when the price breaks out of the Symmetrical Triangle, it might re-test the previous market structure. So, traders can enter on the pullback also. You should also look for any reversal candlestick pattern like Hammer , Bullish Engulfing in the pullback. pullback here is very small as it is in a small Time Frame (15 Min) Stop Loss :- The stop loss is placed right before the breakout point in a symmetrical triangle chart pattern. Previous low before the breakout is the stop loss. Trailing Stop Loss :- No one knows how high or low the market can go. And by trailing your stop loss, you allow the market to reward you as it moves in your favor. You can use the Exponential Moving Average (EMA) or Moving Average (MA) to trail your stop loss. You can use the 50 EMA to trail your stop loss. If the price closes below it, then you’ll exit the trade. Target :- The price target is equal to the distance from the high and low of the earliest part of the pattern applied to the breakout price point. i)Take the distance between the high and the low of the Symmetrical Triangle — the widest point of the pattern. ii)“Copy and paste it” at the breakout point iii)Exit your trade at the price projection level There is also a bearish symmetrical triangle which is a bearish trend continuation chart pattern. The bearish symmetrical triangle should be formed in an ongoing downtrend and the prices should breakout from the lower trend line. Hope you all learnt from this post. Share with the community if you liked it. Regards Omahto
NSE:NIFTYEducation
by Omahto
4
Descending Triangle - Full ExpanationWhat is descending triangle ?? The descending triangle is one of the top continuation patterns that appears mid-trend. Traders anticipate the market to continue in the direction of the larger trend and develop trading setups accordingly. The descending triangle is a bearish pattern that is characterized by a descending upper trendline and a flat lower trendline that acts as support. This pattern indicates that sellers are more aggressive than buyers as price continues to make lower highs. The pattern completes itself when price breaks out of the triangle in the direction of the overall trend. Element Of Descending Triangle The descending triangle is fairly easy to spot once traders know what to look for. The below method can be applied to all financial markets. 1.)Downtrend: The market must be in a downtrend before the descending triangle pattern appears. This is important and emphasises that traders should not simply trade the pattern whenever the descending triangle appears. 2.)Consolidation: The descending triangle then appears while the market enters the consolidation phase. 3.Flat Lows Or Flat Line Lower trendline: The lower trendline acts as support. Price often approaches this level and bounces off until the breakout eventually occurs. 4.)Decsending or Lower Highs: While the market is consolidating, a downward sloping trendline can be drawn by connecting the highs. This downward sloping trendline shows that sellers are slowly pulling the price down – which provides further support for a bearish trading bias. 5.)Breakdown & Trend Continuation: After price posts a strong break below the lower trendline, traders will look for confirmation of the pattern via continued downward momentum. Calculating Target The descending triangle, often referred to as the ‘falling triangle’, has an inherent measuring technique that can be applied to the pattern to gauge likely take profit targets. For the descending triangle, traders can measure the distance from the start of the pattern, at the highest point of the descending triangle to the flat support line. That same distance can be transposed later on, starting from the breakout point and ending at the potential take profit level. The illustration below shows the distance from A to B can be transferred lower down, from C to D, in order to project a possible take profit level. How to trade Descending triangle When trading the descending triangle, traders need to identify the downtrend and this can be seen in the BANKNIFTY 15 Min chart below. Thereafter, the descending triangle appears as the candlesticks start to consolidate. The measuring technique can be applied once the triangle forms, as traders anticipate the breakout. After viewing a strong break below support, traders can enter a short position, setting a stop at the recent swing high and take profit target in line with the measuring technique.
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NSE:BANKNIFTYEducation
by Omahto
19
📚Trading Lesson. Triangle Types & How to Read Them📚 Triangle is a classic price action pattern that is applied by technical analysts to make predictions trading different financial markets. Depending on the shape of the triangle, there are three main variations of this pattern. Its meaning changes dramatically from one to another so it is crucially important for you to know the difference. 👉 The symmetrical triangle is determined by two contracting trend lines. The pattern is considered to be indecisive meaning that while the market is stuck within, the directional bias is unknown. Only the breakout of a boundary of a triangle clarifies the future direction. 👉 In contrast, the ascending triangle (also called a bullish accumulation) is a classic example of a bullish biased pattern. With a horizontal trend line serving as resistance and a rising trend line service as support, the market is accumulating volumes for a bullish breakout. Once the horizontal resistance is broken, bullish continuation follows. 👉 The descending triangle is a bearish biased pattern. Also called a bearish accumulation, the pattern indicates the preparation of the market participants to set a new low after consolidation and contraction within a triangle. Once the horizontal support is broken, bearish continuation follows. 🔔Please, support this educational post with a lovely comment and like. Also, subscribe to our page for more educational posts & signals.🔔
BITFINEX:BTCUSDEducation
by UnitedSignals
3
Principles of Triangle Pattern (PaisaMania - Learn & Earn)Dear Traders, Teach you about the "Principles of Triangle Pattern". There are 3 types of triangle patterns available. Symmetric Triangle Ascending Triangle Descending Triangle Symmetric Triangle - It is continuous and neutral trend of the price, may break either side of the triangle. Need to confirm the trade with breakout and as well with trend indicators. Ascending Triangle - It is bullish pattern and true breakout will happen only on top line. On top flat line is act as a resistance. If the breakout happens on another side, will consider as a false breakout or pattern failure. Descending Triangle - It is opposite to the Ascending Triangle, bearish pattern and true breakout happen only on bottom of the line. On bottom line is act as a support. If the breakout happens on another, will consider as a false breakout or pattern failure.
NSE:NIFTYEducation
by raj3elite
6