Descending Triangle Patterns

Descending Triangle Pattern on EURPLN

Descending Triangle Pattern on EURPLN

Descending Triangle Pattern on EURPLN is a classical chart pattern which is located at the end of a thrust. Therefore, is has bearish implications.

The premise

This is one of the patterns mentioned in the Current Positions section from Weekly Market Update May 24 PDF file. Therefore, let’s take a look at the daily chart of the EURPLN currency pair included in the PDF file. You’ll see that I labeled this pattern as an inverted cup and handle. But, it can be also labeled as a descending triangle or even a symmetrical triangle. From my point of view, it doesn’t really matter how you call it, as long as the implications are similar. I chose to label it a descending triangle though, because it is a descending triangle, considering the length of the pattern. And also the height of the second swing.

Descending triangle pattern on EURPLN daily chart detail

How did I trade the descending triangle pattern on EURPLN?

As you can also see in the previous chart, I simply placed my sell stop order slightly below the support of the pattern. And I considered support, the April 27th, 2020 daily candle low. Consequently, my order is open on May 22nd, 2020.

The outcome

Let’s take a look now at the outcome of this trade. So, in the next chart you’ll see a clear example of the “perfect trade” from my point of view. Therefore, this is the trade that I’m looking for, whenever I place an order. And this is also why I’m not that patient with those trades which go against me and I chose to cut them after two or three days of challenging my entry point. Or even my stop loss.

The outcome of the descending triangle pattern on EURPLN daily chart

The conclusion of the descending triangle pattern on EURPLN

The most important thing from this trade is that I wanted to show you that you don’t have to “marry” with a trade. And you can also choose to cut your trade if the breakout that you’re looking for is not happening. And that’s because you’ll always get this type of outcome from a different trade from a different market. So, there’s no reason to stick with a losing trade.

One more thing

The last thing, for now, is that I would really appreciate if you could show your support for my work and follow Capital Patterns on Twitter and Facebook. Or even subscribe to my newsletter. It would be really motivational and it would mean a lot to me. Thank you!

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