Mastering The Descending Trading Pattern


Sri1078

Uploaded on Apr 9, 2025

The Descending Pattern, often seen in forms like the Descending Triangle, signals growing selling pressure and a potential breakdown. To master it, you need to spot the key signs: lower highs and a strong support level that the price keeps testing.

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Mastering The Descending Trading Pattern

Mastering the Descending Triangle Pattern For more visit: https://navia.co.in/blog/descending-triangle-pattern-in-technic al-analysis/ Introduction to the Descending Triangle Pattern Defi nition: A bearish continuation pattern signaling a potential downward price movement after consolidation. Formation: Characterized by a downward-sloping resistance l ine connecting lower highs and a horizontal support l ine connecting consistent lows, forming a triangular shape. For more visit: https://navia.co.in/blog/descending-triangle-pattern-in-technic al-analysis/ Key Characteristics 1. Lower Highs: Indicate weakening buying pressure and increasing sell ing dominance. 2. Horizontal Support Line: Represents a price level where buyers consistently prevent further decline. 3. Breakout Confi rmation: Occurs when the price decisively breaks below the horizontal support l ine, often accompanied by increased volume. For more visit: https://navia.co.in/blog/descending-triangle-pattern-in-technic al-analysis/ Identifying the Pattern Trendlines: Draw a descending l ine connecting the series of lower highs. Draw a horizontal l ine connecting the consistent lows. Volume Analysis: Observe decreasing volume during pattern formation, with a spike upon breakout. Timeframe: Typically forms over weeks to months, depending on the asset and market condit ions. For more visit: https://navia.co.in/blog/descending-triangle-pattern-in-technic al-analysis/ Trading Strategies Entry Point: Enter a short posit ion upon a confi rmed breakout below the support l ine with increased volume. Stop-Loss Placement: Set stop-loss orders just above the last lower high to manage risk. Profi t Target: Estimate potential decline by measuring the vertical distance between the initial high and the support l ine, subtracting this from the breakout point. For more visit: https://navia.co.in/blog/descending-triangle-pattern-in-technic al-analysis/ Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for i l lustrative purposes and are not intended as recommendations. Brokerage wil l not exceed the SEBI prescribed l imit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ- Registered offi ce: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: [email protected] - Contact No: +91 70100 75500 https://bit. ly/naviadisclaimer For more visit: https://navia.co.in/blog/descending-triangle-pattern-in-technic al-analysis/