Monday, June 9, 2008

Descending Triangles


Descending Triangles
A bearish chart pattern used in technical
analysis that is created by drawing one trend line that connects a series of lower highs and a second trend line that has historically proven to be a strong level of support. Traders watch for a move below support, as it suggests that downward momentum is building.


This is a very popular tool among
traders because it clearly shows that the demand for an asset is weakening, and when the price breaks below the lower support, it is a clear indication that downside momentum is likely to continue or become stronger.

No comments: