How to trade DESCENDING TRIANGLE?
Trend: Bullish/Bearish
Type: Bilateral
Timeframe: From 1h
Entry point: After the price closes outside of the pattern
Shape: A triangle with a horizontal support level and a tightening resistance line. The price is pressed to the support level by the resistance
Trendlines: Two resistance and support lines that form a triangle, while the support line is horizontal, and the resistance diagonally pushes the price to the support level
Touches: The price touches the resistance and support lines, from two times each
Intersection: Candles completely fill the channel of the figure without empty space
Volume: Increase of the volumes in the breakout zone
Confirmation: The pattern is confirmed when the price closes outside one of the trendlines
Support/Resistance: After the price closes outside of the pattern, the support or resistance line may become a mirror level
Breakout chance: 65% - Downward/35% - Upward