How Do You Interpret Descending Triangle Chart Pattern?
How to Analyze Descending Triangle Chart Pattern
Falling Wedge Trading Pattern
The descending triangle pattern is formed in a downward trend & this descending triangle chart pattern signals that the downward gold trend direction of the xauusd price movement is going to continue.
Descending triangle chart pattern signals that there is a xauusd price support level that the gold sellers keep pushing - each time moving this xauusd price support level lower - and once this xauusd price support level breaks - the xauusd price will continue heading downward.
The descending triangle chart pattern support level temporarily prevents the xauusd price from declining and moving lower, while the descending sloping line above the descending triangle chart pattern signals that gold sellers are still present.
A downside xauusd price penetration of the lower line of the descending triangle chart pattern is interpreted as a sell signal for xauusd price breaking out downward from a descending triangle chart pattern - this indicates the gold downwards trend will continue and selling will follow.
Descending triangle pattern is found within a downwards gold trend - descending triangle chart pattern forms as a consolidation period within the downwards gold trend & this descending triangle chart pattern signals a downside gold trend continuation will follow.
Interpret Descending Triangle Chart Pattern?
The xauusd price formed a descending triangle pattern during its downwards gold trend which led to further selling after a xauusd price breakout downwards and a continuation of the downwards xauusd trend.
The sell signal is generated when the price breaks out the lower horizontal sloping line of the descending triangle chart pattern as gold selling resumes to push the xauusd price lower - continuation of the downwards xauusd trend.
How Do You Interpret Descending Triangle Chart Pattern
