Descending Triangle Pattern (Gujrati)

Hello friends and welcome to another informative podcast by Angel Broking.

Did you know that if you're outdoors in a fairly open space (like in the ocean), you can actually spot the rain approaching for miles? If you're not a fan of the rain and witness vertical lines forming between the sky and the ground over the horizon it's probably time for you to find shelter because these lines indicate a downpour.

Similarly, when traders are able to draw a very specific set of lines on a stock graph, they expect the stock price to decline. This specific set of lines is what traders refer to as a descending triangle pattern. This pattern is formed when the stock price high gets consistently lower (forming a diagonal, descending line) while the stock price low remains consistent, (forming a straight line). The two lines - referred to as the upper and lower trendlines respectively, together make a sort of triangle shape.