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1. Security within the context of a downtrend traces an orderly price increase from a swing low much like a rally short. The price then declines to the prior swing low and stalls. A second rally occurs as underlying support is decreased and the stock then forms a lower swing high. This occurs over and over again until a series of equal swing lows and lower swing highs is formed.
2. The power of a descending triangle can be greater after a powerful downside move due to the possible increase of overhead resistance.
3. Descending triangles can be stronger when the swing low that begins the pattern is also an all time low due to the possible lack of underlying support. |
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