Second Lesson About Chart Patterns 2 - Symmetrical descending triangle (Upward and downward) Model Classification: Continuous model Type: ...
Second Lesson About Chart Patterns
2 - Symmetrical descending triangle
(Upward and downward)
Model Classification: Continuous model
Type: bearish
Type of transaction: Medium - long term
Probability of occurrence: Moderate
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The descending symmetrical triangle comes after a descending wave, after which the trend continues as it is falling as it is a continuation pattern to confirm the continuation of the trend.
1-Form configuration scenario:
- As the price falls in a downtrend, a bounce occurs from a support area and the price is shown to the upside indicated on the chart in point 1.
This point is adopted as the bottom of the whole model.
The uptrend continues because of that support until the price bounces down again from a certain resistance point
A new peak is formed and is shown on the figure (2), which will be the highest peak of the model.
((If we have the lowest bottom (1) and the highest peak (2)))
- The price bounces from point (2) downwards, until it bounces from a new support point (new low) and is indicated on the illustration in point (3)
Which should be higher than the bottom number (1).
- The price bounces back from the bottom (3) upwards, until it bounces from a new resistance zone (new top) and is indicated on the illustration of the point (4)
Which should be lower than the top (2).
- Price drops again from point (4) until we reach a new low (5)
And with it the form is completed
When the model is complete, we have two opposite, descending and ascending trends that meet at one point along each of them.
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2-Login Buy:
Waiting for the price to fall, breaking the uptrend, breaking the bottom (5) and then the bottom (3) respectively
Once the bottom is broken (3) a sell contract is opened, and in case the price bounces back to retest, and then returned and broke the same area, the sale is also entered.
That is, we have two ways to enter the sale, either with breakage immediately or after retesting.
3-Target :
Is the same distance between the bottom (1) and the top (2)
That distance between the bottom (5) is measured to the target.
4-STOP:
It is breaking the top # 4 upwards and closing higher than it ...
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.. an illustration on the chart ..
The descending symmetrical triangle has been completed
Thus we have fully explained the symmetrical triangle model
Both ascending and descending
Author : mohammedgaber
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