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Pattern Types
Often, one of the following patterns as influencing the price action of a stock or market covered in AvidTrader research. Click on any pattern of interest for more information about its characteristics, its stages and real examples:
Channel
Double Bottom, Double Top
Head & Shoulders
Island
Rounding Bottom, Rounding Top
Symmetrical Triangle
Ascending Triangle
Descending Triangle
Complex Triangle
Trendline Touch
Wedge
Pattern Stages
Breaking
Consolidating
Correcting
False Break
Trending
Fallen Star
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Decending Triangles
DESCENDING TRIANGLES consolidate a trend, but not necessarily an uptrend or a downtrend. And the pattern's resolution may be to resume the prevailing trend, or to reverse it. Regardless, the pattern holds a retest of its initial low, while interim highs are increasingly lower.
A DESCENDING TRIANGLE that forms within the context of a uptrend is much more likely to resolve in new highs. A DESCENDING TRIANGLE that forms within the context of an uptrend will be vulnerable to a false break where a breakout would normally appear, but this risk diminishes greatly the longer that a failure is avoided.
Volume decreases throughout the DESCENDING TRIANGLE's formation, and its pace increases sharply upon breaking out. The breakout is identified by a break under the lows, or above the pattern's downtrending resistance.
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