The descending triangle and ascending triangle are two common patterns in technical analysis of financial markets. The descending triangle indicates a bearish pattern formed by a horizontal support line and a downward sloping resistance line, and it usually suggests a likelihood of the price breaking downward and continuing the downtrend.
On the other hand, the ascending triangle is a bullish pattern formed by a horizontal resistance line and an upward sloping support line, and it often indicates a likelihood of the price breaking upward and continuing the uptrend.
Traders use these patterns to identify entry and exit points, as they reflect market behavior and the strength of supply and demand. Despite their effectiveness, it is preferable to combine them with other technical indicators to confirm signals and reduce risks.
