Trade Stock Indices

Analysis of Falling Wedge Falling Triangle Setup Patterns

How to Analyze Falling Triangle Setup Patterns

Falling Triangle Pattern

The descending triangle pattern observed on stock charts within index trading materializes during a downtrend and suggests that the current negative movement in the stock price is expected to persist.

Falling triangle stock chart pattern is also referred to as falling wedge pattern.

Falling triangle stock chart pattern setup portrays that there's a support zone that the sellers keep pushing each time moving this support zone lower, & once it breaks, the indices price will continue to move downwards.

The support zone pauses the market's drop, while the sloping line above a falling wedge chart shows bears are still holding on.

A down-side penetration of the lower line of the descending triangle stock chart pattern is a technical sell signal for a market breaking out down from a descending triangle, & this shows selling will follow.

The descending triangle stock chart pattern manifests during a prevailing downtrend: this consolidation phase within a downward market suggests that a continuation of the bearish trend is the likely outcome following the pattern's formation.

Falling Triangle Patterns: Index Trade Chart Setup

How Can I Interpret Falling Triangle Patterns?

The stock market made a descending triangle pattern during its fall, leading to even more selling & the downward trend continuing onward.

A technical sell signal occurs when stock prices break below the lower sloping horizontal line of a descending triangle pattern. This signals renewed selling pressure and continuation of the downward market trend.

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