The descending triangle pattern is a continuation chart pattern that develops in the middle of a downtrend. However, in some instances, this can play as a descending triangle reversal. Also known as the bullish descending triangle pattern.
A triangle pattern is generally considered to be forming when it includes at least five touches of support and resistance.
For example, three touches of the support line and two for the resistance line. Or vice versa.
The descending triangle stock pattern is a versatile chart pattern that is viewed as a continuation pattern and a reversal pattern at the same time.
The main features of the descending triangle pattern are:
This chart pattern operates on a one minute chart, five-minute chart, all the way up to higher time frames.
Whether you’re scalping or swing trading, you can use it with multiple assets.
This includes individual stocks, global indices, commodities, Forex, or cryptocurrency.