Descending Triangle. In the chart above, you can see that the price is gradually making lower highs which tell us that the sellers are starting to gain some ground against the buyers.Now most of the time, and we do say MOST, the price will eventually break the support line and continue to fall. However, in some cases, the support line will be too strong, and the price will bounce off of it and make a strong move up.The good news is that we don’t care where the price goes. We just know that it’s about to go somewhere.
We would place entry orders above the upper line (the lower highs) and below the support line.
We would place entry orders above the upper line (the lower highs) and below the support line.