What Is a Descending Triangle?

The descending triangle (Descending Triangle) usually approaches the level where the low point of the retracement approaches the level and the line that returns to the high point slopes downwards, representing the market seller s power gradually increasing, so that the high point evolves with time, the more the market moves, the more Low, while the lower-level support buying gradually weakened, the selling pressure to stay on the sidelines gradually increased, when the buying power weakened and the selling pressure gradually increased, finishing to the end, the amount can be gently enlarged, and the price to There is a greater chance of a break.

Falling triangle

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The descending triangle (Descending Triangle) usually approaches the level where the low point of the retracement approaches the level and the line that returns to the high point slopes downwards, representing the market seller s power gradually increasing, so that the high point evolves with time, the more the market moves, the more Low, while the lower-level support buying gradually weakened, the selling pressure to stay on the sidelines gradually increased, when the buying power weakened and the selling pressure gradually increased, finishing to the end, the amount can be moderately enlarged, and the price to There is a greater chance of a break.

Chinese name

Falling triangle

Foreign name

Descending Triangle

Price

The chance of breaking down is greater

Downshift

Supporting buying has gradually weakened

definition

The shape of a declining triangle is exactly the opposite of an ascending triangle. The price has a stable purchasing power at a certain level, so each time it falls to that level, it rises, forming a horizontal demand line. However, the selling power of the market has been continuously strengthened, and the high point of each price fluctuation is lower than the previous one, so a downward-sloping supply line is formed.

The descending triangle is also a contest between the long and short sides, but the long and short forces are opposite to the situation shown by the rising triangle table.

The descending triangle is a weak consolidation. The seller appears more active, and has a strong willingness to throw out. The price is constantly lowered, which graphically causes the pressure to tilt the neckline from left to right. The buyer only hangs the purchase order above a certain price, causing resistance at the horizontal support line. Thereby a drop is formed in the figure. ^[1]

As an example, when the descending triangle was first formed, the price began to decline. The entire pattern occurred within four months, but did not break through points A, C and E of the support line. The bottom highs are at points B, D, and F, indicating that market conditions are being distributed and bearish. During the formation of the falling triangle, the value of the trading volume was weaker than expected, but it started to catch up at point F, and the resistance line was also very strong. At the last trial, the resistance was unsuccessful, and the price immediately retreated and fell below the support of point G. Bit. And the volume of G spot is also very high. After the downward triangle pattern was confirmed, the market momentum continued to decline.

This pattern cannot be rushed to determine the bottom. In other triangle patterns, if the price develops to the end of the triangle and still cannot form an effective breakthrough, its long and short forces are exhausted, and the pattern will lose its original meaning. The exception is the falling triangle, which may still fall when the price reaches its tail.

After the pattern is broken, the price will also be drawn back. The height of the drawback is generally near the neckline. At this position, a large number of profit and escape disks will cause the price to continue to fall significantly.

If the volume is not accompanied by a large amount of volume, it means that the price is lower.

Falling triangle

The meaning of playing is not very strong. At this time, you should pay attention to the support level below. If the price hoveres, you should consider reducing the position.