Descending Triangle 

A descending triangle is a bearish continuation pattern in technical analysis that is used to analyze and forecast potential price movements of financial instruments. The descending triangle pattern is formed by connecting a series of lower highs with a horizontal support line. It suggests that the price is likely to continue its downward trend after the pattern is completed. Here are the main components of a descending triangle pattern: Lower Highs: The pattern starts with a series of lower highs, where each subsequent peak is lower than the previous one. This indicates that sellers are consistently entering the market at lower prices, showing a weakening of buying interest. Horizontal Support Line: A horizontal support line is drawn connecting the lower lows of the price, forming the lower boundary of the triangle. This line represents a level where buying pressure has previously halted the price decline. Descending Trendline: A descending trendline is drawn connecting the lower highs. This line serves as the upper boundary of the triangle and shows the downward momentum of the pattern. 

    Category

    Read the Latest Market Journal

    Weekly Updates 25/9/23 – 29/9/23

    Published on Sep 25, 2023 27 

    This weekly update is designed to help you stay informed and relate economic and company...

    Top traded counters in August 2023

    Published on Sep 19, 2023 276 

    Start trading on POEMS! Open a free account here! The market at a glance: US...

    Weekly Updates 18/9/23 – 22/9/23

    Published on Sep 18, 2023 33 

    This weekly update is designed to help you stay informed and relate economic and company...

    The Merits of Dollar Cost Averaging

    Published on Sep 15, 2023 56 

    Have you ever seen your colleagues, friends or family members on the phone with their...

    Singapore Market: Buy the Dip or Dollar-Cost Averaging?

    Published on Sep 14, 2023 48 

    To the uninitiated, investing in the stock market can be deemed exhilarating and challenging. The...

    What are covered calls and why are they so popular?

    Published on Sep 12, 2023 560 

    Table of Contents Introduction Understanding Covered Calls Benefits of Covered Calls Popularity Factors Potential Drawbacks...

    Why Do Bid-Ask Spread Matter in Trading?

    Published on Sep 11, 2023 33 

    Why Do Bid-Ask Spread Matter in Trading? The bid-ask spread is the difference between the...

    Weekly Updates 11/9/23 – 15/9/23

    Published on Sep 11, 2023 14 

    This weekly update is designed to help you stay informed and relate economic and company...

    Contact us to Open an Account

    Need Assistance? Share your Details and we’ll get back to you