Descending Triangle Chart Pattern Video Lecture - Chart Pattern Trading

good afternoon everyone this is
Christian with perfect stock alert calm
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please refer a friend or I'll hit you in
the face with a brick what I can't I
can't say that today we'll be looking at
the descending triangle and this is a
bearish continuation signal though it's
also seen at times as a reversal signal
so it can be either or the descending
triangle has the two same elements as
the ascending triangle only it's upside
down so in this particular case it is a
bearish signal telling you'd look for
price activity to break down the slope
here is your resistance line and you
must have at least two points two high
points to draw that out but in typical
cases you'll have more three four five
eight basically what this is telling you
is that sell side or sell pressure is
increasing as time goes on that's very
bearish and down here with your supply
line or your shot your buy pressure is
basically flat so you're not getting an
increase in buying activity and that's
why you have a straight line on the
support line you have to have at least
two but in most cases you'll have more
than that
one two three four maybe one there five
they don't have to be to the penny
but within a pretty close range be very
easy for you to draw a straight line
across that and see that they're
bouncing off of that supply line at some
point price will break down or break
through that support line right there's
what we had that it's quite common to
see after you've had that sell off to
see a price bounce back up to touch that
previous support and see if they're
finding resistance that's what they
found they kicked off with that volume
during the formation is going to be kept
it very low volume it's just basically a
consolidation period right here and the
price activity will go from being much
more volatile to less volatile over time
and just contract then
until some point in time you will see
that breakout you're closer and closer
to the apex of the descending triangle
on the breakout is nice to see
confirmation by increasing volume and
this particular case is a downside but
if you were looking at sending triangle
you want to see it as well though it
doesn't have to be there to actually
still form something you might want to
note but in my particular case if I were
trading it I'd be looking for volume to
confirm or I'd be much more cautious and
clean this up a bit you can get a target
for how low you expect price to fall
once it's broken out and it's the same
way as you would on a lot of other
methods someday the highest point in the
pattern pull it down to your support
line that distance added or so in this
case subtracted from the breakout point
will be rough target of how low you
expect the price to fall for finding
that support line remember targets are
always just targets they're not set in
stone you should just use them as an
idea not an exact number please take a
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