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How Do I Trade The Descending Triangle Pattern?
The Descending Triangle stock chart pattern is a bearish pattern. Generally considered a continuation pattern (when found in a down trending stock), it can be a reversal pattern when it appears at the top of an up trending stock. Look at the chart below.
This pattern occurs when the lows form a support line and a series of lower highs form a descending trend line. It is not a good sign for the stock when this triangle pattern is formed.Trading Classic Chart Patterns Always watch for chart patterns to appear. They can act as your crystal ball. This is a great pattern for shorting stock, a sell signal, or buying puts. Traders and investors spend a lot of time studying stock chart patterns. You should too.
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