descending triangle

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Descending Triangle

In technical analysis, a series of high and low prices for a security that, when plotted on a chart, looks vaguely like a triangle pointed to the right. A descending triangle indicates that both the highs and the low are lowering. It is a bearish signal. See also: Triangle, Ascending Triangle.
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descending triangle

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descending triangle
In technical analysis, a triangle-shaped chart formation indicating a downward price for a stock and characterized by a nearly vertical left side, nearly horizontal bottom, and downward sloping third side that dips to the right. A descending triangle is a bearish indicator in which a sell signal is confirmed if the price breaks through the bottom side. Compare ascending triangle.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
There are three types of triangles that have forecasting value-symmetrical, ascending and descending triangles. Although these patterns sometimes mark price reversals, they usually just represent pauses in the prevailing trend.
While the ascending and descending triangles have a built-in bias, the symmetrical triangle is inherently neutral.
<span style="color: #0000ff;">An example of a descending triangle which is normally a bearish signal.<br></span>