BULLISH DESCENDING TRIANGLE

Descending triangles are mainly considered continuation patterns but they also can be used as reversals. This pattern starts with an initial impulse move followed by a point of consolidation. As price consolidates it makes lower highs and equal lows forming the descending triangle. The momentum builds up and usually breaks out back into the direction of the trend. If price does break back into the direction of the trend then look for a continuation and the target is the Distance Between The Mouth Of The Triangle Added To The Breakout but preferably I use a 100% extension of the first impulse move.