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Guidelines of Descending Triangles

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Guidelines of Descending Triangles in General Forex Discussion_xx
 

Guidelines of Descending Triangles
A triangular-shaped pattern bounded by two trend lines, the bottom one horizontal and the top one sloping down, that intersect at the triangle apex
Horizontal support
A horizontal (or nearly so) base acts to support prices. Prices
line should touch the base at least twice (at least two minor low
that either touch or come close to the trend line).

Down-sloping top A down-sloping price trend that eventually intersects the horizontal base line at the apex. Prices should rise up and touch (or
come close to) the sloping trend line at least twice, forming two
distinct minor highs.

Breakouts
Usually occur on very high volume that diminishes over time.
However, prices can also break out on low volume.
Price action after breakout
Prices usually move down quickly, reaching the ultimate low in a
straight-line fashion. Pullbacks occur about half of the time.

price target
Calculate the height of the formation by subtracting the highest
high from the lowest low. Subtract the height from the value of the
lower trend line to get the predicted minimum price decline. Alternatively,
draw a line parallel to the down-sloping trend line starting
at the lower left corner of the formation. The value of this line where
prices break out of the formation becomes the target price. For
upward breakouts, add the height to the price where it pierces the
top trend line.
Best forex trading signals
Since the breakout direction is unknown, always wait for the break
out to occur. After a downward breakout, sell short immediately or
after prices pull back to the triangle base and start moving down
again. Another way to play the formation is to wait for an upward
breakout then buy the pair .

KEY POINT: A descending triangle is a wedgeshaped chart pattern that breaks out downward most often. It can act as a reversal or continuation of the price trend.

SMART INVESTOR TIP If price touches the bottom trendline only twice, it should touch the down-sloping trendline at least three times. This is not a requirement, but fi ve touches for many chart patterns works well to help avoid selecting boneheaded ones.

SMART INVESTOR TIP Avoid excessive white space between the two trendlines when selecting descending triangles. Price should cross the triangle plenty of times to fi ll the area.

KEY POINT: A descending triangle forms when buyers acquire the pair at a fi xed price, forming a line of support. Others sell when the stock becomes overpriced.

SMART INVESTOR TIP It is helpful to look at a price chart without any trendlines connecting the pattern boundaries to make sure that what you are seeing is really a chart pattern. Can you draw each trendline a different way, by connecting other nearby peaks or valleys? Will others see the same pattern as you? If there are doubts, then skip the pattern and look for another one.




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#1 - October 07, 2018, 10:58:03 PM
« Last Edit: February 02, 2019, 04:17:30 AM by Admin »

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Guidelines of Descending Triangles in General Forex Discussion_xx
Hello I am Azura.
I have read guidelines, I will keep in mind 8)
Thanks.
#2 - October 08, 2018, 07:21:07 AM

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Guidelines of Descending Triangles in General Forex Discussion_xx

Why are so many threads like this that don't use images as an explanation. Even though this kind of theory should be accompanied by images so that it can convey more meaning and essence. Because if you just read it, you will certainly be big and don't know the real meaning of the theory



#3 - February 06, 2019, 10:29:36 PM

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Guidelines of Descending Triangles in General Forex Discussion_xx
A pretty good and thankful strategy has shared this Guidelines of Descending Trianle strategy. But I also agree with the opinion of Mr. '' Tahajud '' that it is better that this explanation is accompanied by images so that we all more easily capture the material and apply it in real trading.
#4 - February 07, 2019, 12:27:12 AM

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Guidelines of Descending Triangles in General Forex Discussion_xx
I sometimes find a pattern like this, but I think it's mostly the opposite, sometimes discending becomes ascending and vice versa, I always anticipate with a sell stop or buy stop, which is annoying when there is a shadow
#5 - February 07, 2019, 04:51:27 AM

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Guidelines of Descending Triangles in General Forex Discussion_xx
A pretty good and thankful strategy has shared this Guidelines of Descending Trianle strategy. But I also agree with the opinion of Mr. '' Tahajud '' that it is better that this explanation is accompanied by images so that we all more easily capture the material and apply it in real trading.
To make it easier for us to understand, with images we are more helpful to be able to understand it faster. Because we can take advantage of the real account trading, to be able to consistently profit as well as profit withdrawals.
#6 - February 07, 2019, 05:06:29 AM

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Guidelines of Descending Triangles in General Forex Discussion_xx
chart patterns like that are very accurate but rather difficult.
#7 - September 11, 2019, 04:44:41 PM

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