Descending triangle - Bitcoin
Updated
The Descending Triangle
This pattern indicates that sellers are more aggressive than buyers, and is usually resolved on the downside. The measuring technique is that the analyst must measure the height of the pattern at the base to the left and then project that distance down from the breakdown point.
The Volume Pattern
The volume pattern in descending triangles is that the volume diminishes as the pattern works itself out and then increases on the breakout. During the formation the chartist can detect subtle shifts in the volume pattern coinciding with the swings in the price action. This means that in the ascending pattern, the volume tends to be slightly heavier on bounces and lighter on dips. In the descending formation, volume should be heavier on the downside and lighter during the bounces.
The Time Factor in Triangles
One final factor to be considered on the subject of triangles is that of the time dimension. The triangle is considered an intermediate pattern, meaning that it usually takes longer than a month to form, but generally less than three months.
Bitcoin bottom = $3,400
This pattern indicates that sellers are more aggressive than buyers, and is usually resolved on the downside. The measuring technique is that the analyst must measure the height of the pattern at the base to the left and then project that distance down from the breakdown point.
The Volume Pattern
The volume pattern in descending triangles is that the volume diminishes as the pattern works itself out and then increases on the breakout. During the formation the chartist can detect subtle shifts in the volume pattern coinciding with the swings in the price action. This means that in the ascending pattern, the volume tends to be slightly heavier on bounces and lighter on dips. In the descending formation, volume should be heavier on the downside and lighter during the bounces.
The Time Factor in Triangles
One final factor to be considered on the subject of triangles is that of the time dimension. The triangle is considered an intermediate pattern, meaning that it usually takes longer than a month to form, but generally less than three months.
Bitcoin bottom = $3,400
Note
TA is a meme
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