How to trade Descending Triangle Chart Pattern and False Triangle Breakout

In Continuation with Last week article of Trading Stocks with Symmetrical Triangle’s Chart Pattern  and How to trade Ascending Triangle Chart Pattern lets discuss another  triangle pattern

• Descending Triangle Pattern

Descending Triangle: This pattern comprises of 2 trendline, one drawn horizontally to mark the support, second trendline is downward sloping trendline formed by joining the lower highs. This pattern is classifies as . Volumes generally diminish during the formation of the pattern and when breakdown/breakout occurs volume expansion occurs for pattern confirmation.

Descending Triangle chart pattern should contain at least 2 or more similar low not exactly equal but in proximity to form the lower horizontal trendline. To form the downward slopping trendline at least two lower highs are required. We would set an entry order below the support line and buy order above the slope of the lower high..


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