Improve Your Market Timing: The Descending Triangle Chart Pattern
February 26th, 2010 | 
Author: - This Pattern is the inverse of the Ascending Triangle and is a bearish continuation pattern.
- The stock has formed consistent support as evidenced by several touches on the lower and basically horizontal trend line as the upper trend line posts consistently lower highs.
- The selling pressure is evident as the trend lines converge and the breakdown point is the breach of the lower horizontal trend line on increasing volume.
- The stock has repeatedly challenged the lower horizontal trend line which acts as support but has not breached the level.
- Selling pressure is present as evidenced by the lower highs and are depicted by the converging upper trend line.
- Eventually, the stock will usually break through the support n increasing volume and will continue its downside move.
Posted in Improve Your Market Timing
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