Education & Information
Sell Signals
Bearish Triangle Pattern
The bearish triangle pattern consists of a minimum of 5 columns, but it could have more. The pattern begins with lower columns of Xs and higher columns of Os indicating a balance in the supply and demand relationship. The bearish triangle pattern is broken when a column of Os exceeds a previous column of Os indicating the balance is broken and a new trend is beginning in the stock. Usually, a bearish triangle pattern will form after a stock has already begun a decline. The triangle indicates demand is meeting supply on a short-term basis. The break of the triangle pattern means the short-term demand is exhausted and supply is still strong. A new “leg” of the decline is likely to result.