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Technicals

Descending Triangle

An Ascending Triangle is a bullish pattern with a break above the upper horizontal resistance line indicating a potential uptrend. Its opposite, the Descending Triangle, is a continuation pattern that suggests a potential downtrend when the lower horizontal support line is broken with increased volume. This pattern is characterized by decreasing volume as the price approaches the upper trendline, indicating a lack of buying interest. Once the lower horizontal line is broken, it confirms the downtrend and presents a potential opportunity for traders to capitalize on the bearish market movement.

Related terms

Volume indicators

Understand the meaning and definition of Volume indicators in the context of stock market, trading, and investments.

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relative strength index

Understand the meaning and definition of relative strength index in the context of stock market, trading, and investments.

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Base

Understand the meaning and definition of Base in the context of stock market, trading, and investments.

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V Pattern

Understand the meaning and definition of V Pattern in the context of stock market, trading, and investments.

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