Jul 23, 2021
Aug 10, 2021
since January 2000
— — — BR — Breakout line — — — TR — Target line
Triangle Descending pattern
The Descending Triangle pattern is formed when the price of a security establishes a support level (1, 3, 5) and bounces off that level to a declining resistance level, creating a down-sloping top line (2, 4). The breakout can either be up or down, depending if the resistance or highest support level is broken first.
Once the price breaks out from the top pattern boundary, day traders and swing traders should trade with an UP trend. Consider buying a security or a call option at the breakout price level. To identify an exit, compute the target price by adding the pattern height from breakout point. For upward breakouts the level is the highest high within the triangle (2). Pattern height is the difference between the level of the bottom horizontal line and the highest high.
More Patterns Examples
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Pattern Triangle Descending NVQ ETF found on Oct 06, 2021
Pattern Broadening Top Inverted DLTR Stock found on Aug 11, 2021
Pattern Head-and-Shoulders Bottom ESGC Stock found on Dec 29, 2017
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