📉 Chart Pattern #2: Descending Triangle Pattern
🔍 What is it?
The Descending Triangle is a bearish continuation pattern. It often forms during a downtrend and suggests that the price may break downward once the pattern completes.
It’s made up of:
A flat support line at the bottom (price keeps bouncing at the same level)
A descending resistance line from the top (lower highs showing sellers are in control)
This shows strong selling pressure — sellers are stepping in earlier each time.
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🧠 What Does It Tell Us?
👉 Sellers are pushing the price lower
👉 Buyers are trying to hold a support level
👉 Usually ends in a breakdown below the support, often with volume
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📊 How to Trade It:
1. Identify the pattern: Flat support + lower highs
2. Wait for breakdown below support with strong volume
3. Enter a SHORT after the breakdown or retest
4. Set stop-loss above the last lower high
5. Target size = height of the triangle subtracted from the breakdown point
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✅ Example Setup:
Support: 0.950
Resistance lowers from 1.100 to 1.000
Breakdown at 0.950
Target = 0.800 (triangle height = 0.150)
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⚠️ Not all descending triangles break down — wait for confirmation and use proper risk management!
Next up: Pattern #3: Symmetrical Triangle 🔺🔻
Stay tuned and keep learning one by one!
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