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