How Do You Trade Descending Triangle Chart Pattern?

How to Trade the Descending Triangle Pattern

Falling Wedge Pattern

The descending triangle chart pattern in gold trading is formed in a down trend & it displays that the down-wards direction of price movement is going to continue.

Descending triangle pattern is also referred to as falling wedge pattern.

Descending triangle chart pattern highlights that there's a support area that the sellers keep pushing every time moving this support area lower, & once it breaks price will continue moving downward.

Support level temporarily prevents the market from declining lower, while the descending sloping line above the falling wedge chart pattern signals that sellers are still present.

A downside penetration of the lower line of the descending triangle chart pattern is a technical sell signal for a market breaking down from a descending triangle, & this demonstrates selling will follow.

Descending triangle pattern is found within a Trading down-wards trend, descending triangle pattern forms as a consolidation period within downwards trend and indicates downside market trend continuation will follow.

How to Trade the Descending Triangle Pattern

The market formed a descending triangle pattern during its downwards trend which led to further selling and continuation of the downwards trading trend.

The technical sell signal is when price breaks out the lower horizontal sloping line of the descending triangle chart pattern as selling resumes to push the price lower - continuation of the downwards trend.