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Descending Triangle (Continuation) - ChartSchool - StockCharts

Descending Triangle (Continuation) - ChartSchool - StockCharts

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18/2/2014 Descending Triangle (Continuation) - ChartSchool - StockCharts.com 1/3 StockCharts.com - ChartSchool Learn more about Technical Analysis and Charting Terminology You are here: StockCharts.com » ChartSchool » Chart Analysis » Chart Patterns » Descending Triangle (Continuation) Advertisement Descending Triangle (Continuation) The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution. Because of its shape, the pattern can also be referred to as a right-angle triangle. Two or more comparable lows form a horizontal line at the bottom. Two or more declining peaks form a descending trend line above that converges with the horizontal line as it descends. If both lines were extended right, the descending trend line could act as the hypotenuse of a right triangle. If a perpendicular line were drawn extending up from the left end of the horizontal line, a right triangle would form. Let's examine each individual part of the pattern and then look at an example. 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.
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  • Spring '12
  • RamonBrunoTulibasJr.
  • triangle, horizontal line, Technical Analysis and Charting Terminology, reaction highs

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