Descending Triangles
A descending triangle is a technical analysis pattern often seen in financial markets. It is characterized by a series of lower highs and a horizontal support line, indicating that sellers are increasingly dominating the market. This pattern suggests a potential bearish trend, as the price may break below the support level.
Traders often look for descending triangles to identify possible selling opportunities. The pattern typically forms over a period of time, and its completion can signal a continuation of the downward movement. Understanding this pattern can help traders make informed decisions regarding their investments in assets like stocks or cryptocurrencies.