Descending Triangle

16 ביוני 2022

The descending triangle pattern usually appears at the end of a decline or following a downtrend correction. However, it can also happen during an ascent as a consolidation. Price bounces off the support level at least twice, forming the pattern. After the end of a retracement in a downtrend, the pattern is completed. A significant bearish momentum-led slide is triggered by a negative breakthrough from the support. A falling triangle's breakout is usually triggered to the downward. The distance between the initial high and the support is measured. This calculated distance is then projected to the downside, allowing the target price to be determined. Traders can sell short at the time of the negative breakout, with a stop-loss order set a little higher than the highest price reached during the triangle's construction. From here, I set at the date of 15/6/2022 at entry price at 45.73, Stop Loss at 49.38 and Target Price at 43.05. Means I got a 3.48% profit when it touched the Target Price.