Bearish Descending Triangle.<p align="center"><img id="2820" class="imgNone" onload on·load v. on·load·ed, on·load·ing, on·loads v.tr. To load (a vehicle or container). v.intr. To load a vehicle or container. ="resizeImg(this,480)" src="http://www.ibtimes.com/data/bigimages/10265.gif" alt="" /> A Bearish Bearish Words used to describe investor attitude. A bearish investor believes that a particular asset or the market as a whole will decline in value. bearish Descending Triangle is a <strong>bearish continuation pattern Continuation Pattern A technical analysis pattern that suggests a trend is exhibiting a temporary diversion in behavior and will eventually continue on its existing trend. The symmetrical triangle charts displayed below are both exhibiting a continuation pattern. </strong>that typically appears after a decline in price. Price consolidates briefly in the triangle and usually continues in the same direction as the previous trend. <strong>Measuring the move: </strong> Add the vertical distance of the open end of the triangle to the to the price at the breakout and this would give you an approximate price target for the next run down in price. <strong>Trading the pattern: </strong>Traders should be watching the lower trend line of the pattern. A bearish entry signal is when price pierces through the lower trend line. An important thing to note when trading this pattern is avoiding a false breakout. By entering when prices close below the lower trend line or waiting for a retest of the lower trend line, traders can prevent themselves from entering on a false breakout. <strong> </strong> |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion