Descending triangle. It is a chart pattern, characterized by...

Descending triangle.

It is a chart pattern, characterized by horizontal bottom and down sloping top. This is created when a bearish market pushes price down against a support level.

They are the pressure areas in a stock chart where the area of support tries to block a falling price. But the underlying bearishness of the market pushes the price slowly with swing downs and swing ups, which forms a pattern, which looks like a triangle. The bottom of the triangle is horizontal support trend line and the top is down sloping resistance trend line.

It may be both reversal or continuation chart pattern. It is so named because the descending resistance trend line predicts the fall in prices, hence the name descending triangle.


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