The longer the consolidation and the test of a the horizontal support of the bearish reversal chart pattern(descending triangle chart pattern) the stronger the breakout and the following trend period. We look for a bearish reversal in price when price is consistently test support level.
The descending triangle chart pattern looks to have the follow lay out:
Price trend can be any direction leading to the pattern, Shape looks like aprice pattern bounded by two trendlines, the bottom one horizontal and the top sloping downward. Price should touch one trendline at least three times and the other trendline at least twice as distinct peaks or valleys.
This is important:
Price must cross the pattern from trendline to trendline, nearly filling the available space. Avoid descending triangles with abundant white space.
Volume recedes 78% of the time and gets quite low just before the breakout. The pattern confirms as a valid one when price closes outside one of the trendlines. The breakdown levels and the near supports levels are the levels traders needs to keep an eye on.
Breakdown: $9269.8
Support 1: $8886.8
Support 2: $8174.4
Support 3: $7526.8
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice
The descending triangle chart pattern looks to have the follow lay out:
Price trend can be any direction leading to the pattern, Shape looks like aprice pattern bounded by two trendlines, the bottom one horizontal and the top sloping downward. Price should touch one trendline at least three times and the other trendline at least twice as distinct peaks or valleys.
This is important:
Price must cross the pattern from trendline to trendline, nearly filling the available space. Avoid descending triangles with abundant white space.
Volume recedes 78% of the time and gets quite low just before the breakout. The pattern confirms as a valid one when price closes outside one of the trendlines. The breakdown levels and the near supports levels are the levels traders needs to keep an eye on.
Breakdown: $9269.8
Support 1: $8886.8
Support 2: $8174.4
Support 3: $7526.8
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice