Learn about trading Descending Triangle

The AUD/NZD is usually known as a quiet trading Foreign exchange pair. This currency has been moving sideways, neither breaking new lows nor highs. One strategy we can get benefit of fluctuation market is to find pricing patterns using resistance and support. In this article we will learn about trading Descending Triangle chart formation.

The main triangle trading system can been seen described below. Forex traders plan to trade the descending triangles bearish, and find to short position AUDNZD at its last resistance levels. Our entry position can be found by determining resistance by making a declining trendline. Last resistance is found close near 1.2900 making it the first entry to consider short position.

Stop loss should be plotted above the last resistance level inn case market price breaks high against our trading position. Descending triangles pattern can also let a Forex trader to target support level, close the last low, as a potential profit taking level.

It's necessary to know that descending triangles pattern occur prior to a market breakout. These triangle chart patterns have a bearish potential and their presence on a graph is usually seen as a bearish trend continuation. If a descending triangle pattern is found at the high of an bullish trend a descending triangle chart pattern can give signal a pending reversal. Regardless of the direction taken, Forex breakout traders may choose to entry the Forex market if the currency pair trade through support or resistance lines.