BINANCE:BTCUSDTPERP   Bitcoin / TetherUS PERPETUAL FUTURES
DESCENDING TRIANGLE PRICE ACTION

This chart pattern starts forming with bears already in control of the exchange rate's downtrend. Bulls make a stand at a certain rate and try holding it as much as they can, while bears keep squeezing on that rate till they finally break it and the exchange rate continues its downtrend.

Let's break down the pattern formation!

In a downtrend, price action finds the first resistance (1), which will be the horizontal resistance for the rest of the pattern formation.

Price action reverses direction from the first resistance (1) and goes upwards till it finds the first support (2), which will be the highest high in the pattern.

Price action reverses direction from the first support (2) and goes downwards, till it finds the second resistance (3), which will be around the rate of the first resistance (1)

Price action reverses direction from the second resistance (3) and goes upwards, till it finds the second support (4), which must be lower than the first support (2)

The pattern is completed when price action reverses direction from the second support (4) and goes downwards till it breaks the triangle's lower border at point (5)

Entry: after breaking the triangle's lower border at point (5), either with an entry after the breakout, or after a possible retest of the lower border.

Take profit: identified by measuring the vertical distance between the triangle's lower border and the first support (2), that measurement is then applied from the breakout rate (5)

Stop loss: can either be the triangle's lower border rate (5), or the last touch to the triangle's upper border before the breakout (4)

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