The Descending Triangle
The descending triangle is formed when the market makes lower highs and the same level lows. These patterns are normally seen in a downtrend and viewed as a continuation pattern as the bears gain more and more control running down to the bottom support line of the pattern. While you normally will see this pattern form in a downtrend, if you do see it in an uptrend it should be paid attention to as it can act as a powerful reversal signal.
The image below illustrates.
Read more about this topic: Triangle (chart Pattern)
Famous quotes containing the word descending:
“There is, however, this consolation to the most way-worn traveler, upon the dustiest road, that the path his feet describe is so perfectly symbolical of human life,—now climbing the hills, now descending into the vales. From the summits he beholds the heavens and the horizon, from the vales he looks up to the heights again. He is treading his old lessons still, and though he may be very weary and travel-worn, it is yet sincere experience.”
—Henry David Thoreau (1817–1862)