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Guidelines of Descending Triangles in General Forex Discussion_6825f0acc9f09

Guidelines of Descending Triangles

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the use of the descending triangle pattern can make it easier for you to open a forward position using this pattern a lot on the chart
#46 - December 08, 2022, 03:54:02 AM

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whether or not we draw this pattern in my opinion will be obtained from how often we practice using this pattern
#47 - December 10, 2022, 08:18:08 AM

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Uniquely using this system we can without using indicators
#48 - December 12, 2022, 05:08:39 AM

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Guidelines of Descending Triangles in General Forex Discussion_6803a6c52eb12
#49 - Today at 03:08:00 AM

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Descending triangles are a bearish chart pattern in forex trading, typically indicating a potential trend reversal. Traders can identify this pattern by looking for a series of lower highs and a horizontal support level. A breakdown of the support level may indicate a sell signal, while a breakout above the descending trendline could signal a bullish reversal. It's important to confirm this pattern with other technical analysis tools and consider fundamental factors before making any trades. Additionally, traders should set stop-loss orders to manage risk.
#49 - March 03, 2023, 12:44:48 AM

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if you use this pattern then you can be smart and strong
#50 - March 05, 2023, 08:40:27 AM

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This descending pattern seems to be a forwarding pattern, the opposite of which is the ascending pattern
#51 - March 06, 2023, 01:20:51 PM

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you can use this pattern for forwarding or reversal
#52 - March 07, 2023, 03:44:23 AM

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the pattern is a unique pattern that you really have to examine more deeply
#53 - March 08, 2023, 09:28:17 AM

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Descending triangles in forex trading are technical chart patterns used to identify potential bearish breakouts. These patterns are created by drawing two trend lines. The lower trend line is a support line that connects a series of lower highs, while the upper trend line is a resistance line that connects a series of lower lows. When the two trend lines converge, a descending triangle pattern is created. The descending triangle suggests there is a bearish bias in the market, as the price action is creating lower highs and lower lows. Traders may look to enter a sell position when the support line is broken, with their stop loss order placed above the resistance line. It is also important to note that the longer the triangle formation, the stronger the breakout is likely to be.
#54 - March 17, 2023, 05:01:09 AM

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Descending triangles are a common chart pattern in forex trading that can provide valuable insights into future price movements. They are formed when a downward-sloping trendline connects a series of lower highs, while a horizontal trendline acts as support, connecting a series of equal or nearly equal lows. This creates a triangle-like pattern, with the price consolidating between the two trendlines. In this article, we will discuss the guidelines and characteristics of descending triangles and their significance in forex trading.

1. Structure of Descending Triangles:
Descending triangles have a distinctive structure that traders can identify on price charts. The pattern consists of two trendlines: a downward-sloping resistance line and a horizontal support line. The price oscillates between these two lines, forming a triangle-like shape.

2. Formation:
Descending triangles are typically formed during a downtrend when sellers dominate the market. As the price moves lower, it encounters support at relatively the same level, creating a horizontal support line. Meanwhile, the downward-sloping trendline connects the lower highs, indicating the presence of strong selling pressure.

3. Price Targets:
One of the key aspects of descending triangles is the price target following the pattern's completion. Traders commonly use a measured move technique to estimate the potential downward price movement. The distance between the highest high and the horizontal support line is measured and then projected downwards from the breakout point, providing a target for the price decline.

4. Breakout Confirmation:
Descending triangles are typically regarded as continuation patterns, suggesting that the prevailing downtrend is likely to continue. A breakout occurs when the price breaches the horizontal support line, indicating a potential acceleration of selling pressure. Traders often wait for a confirmed breakout before entering a trade, seeking confirmation through increased volume or a significant price move beyond the support line.

5. Volume Considerations:
Volume plays a crucial role in confirming the validity of the descending triangle pattern. As the price approaches the apex of the triangle, volume tends to diminish, indicating a contraction of trading activity. However, when the breakout occurs, there is often an increase in volume as traders react to the pattern's completion. Higher volume during the breakout can enhance the reliability of the pattern and validate the potential price continuation.

6. Timeframe Considerations:
The timeframe in which the descending triangle pattern appears is essential for traders. Patterns observed on longer timeframes, such as daily or weekly charts, tend to carry more significance and generate stronger price movements compared to patterns on shorter timeframes. Traders should consider the timeframe they are trading and evaluate the pattern's relevance accordingly.

7. Trade Entry and Risk Management:
Traders can employ various strategies when trading descending triangles. Some traders prefer to enter short positions once the price breaks below the horizontal support line, placing stop-loss orders slightly above the breakout level to manage risk. Others may wait for a retest of the broken support line as a confirmation of the breakout before entering the trade.

8. Pattern Failure:
While descending triangles often result in downward price movements, it is essential to acknowledge that patterns can fail. Sometimes, the price may break above the resistance line instead of below the support line, leading to a pattern failure. Traders should be vigilant and use appropriate risk management techniques to protect their positions in case of pattern failures.

9. Confirmation through Additional Indicators:
To increase the probability of successful trades, traders often combine the analysis of descending triangles with other technical indicators. This can include oscillators, such as the relative strength index (RSI) or moving average convergence divergence (MACD), to identify potential overbought or oversold conditions. Fundamental analysis and market sentiment can also complement the technical analysis of descending triangles.

10. Trading Plan and Practice:
Like any trading strategy or pattern, implementing descending triangles requires a well-defined trading plan and practice. Traders should thoroughly study.
#55 - May 09, 2023, 04:14:03 AM

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#56 - Today at 03:08:00 AM

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This pattern indicates price consolidation and is often followed by a strong break. Determine Support and Resistance Levels
#56 - May 28, 2023, 11:20:35 AM

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