Descending Triangles

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Descending Triangles.

A bearish chart pattern indicating that downward momentum is building.  A descending triangle is created by connecting one trend line that connects a series of lower and lower highs and a second line that connects a series of lows.  The traders then take note of when a price action moves beneath the lower support line.  It’s a strong signal for traders to take a short position, which contributes to pushing the price of an asset even lower.  Descending triangles are very popular chart patterns as they show clearly that the demand for an asset is weakening.