Group: Trend Continuation
Definition:
The opposite of the ascending triangle. Support holds while lower highs are formed, showing increasing selling pressure.
Key Characteristics:
- Horizontal support
- Lower highs
- Downside breakout
How to Trade:
Sell on a breakout below support. Place the stop-loss above the last high.
Common Mistakes:
- Buying against the trend
- Entering before the breakout
Conclusion:
Performs well in downtrends and during strong moves in indices.
