TRADING FOREX WITH DESCENDING TRIANGLE CHART PATTERN

Descending chart pattern of forex trading has flat bottom and falling upper line. Flat bottom tells that the pair has support at a price level and falling upper line tells that the resistance over time is reaching lower and lower.

To draw the descending chart pattern on forex chart, we must have at least two lows and two highs. The break out point suggests that the support has broken and the pair will go down strongly.

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Above image shows how the descending chart pattern is drawn on the candle stick chart. The stop loss for the sell orders using descending chart pattern can be placed on the resistance points or on the falling upper line.