Hi Traders!
The market is in a downtrend.
As you can see the market is in a descending triangle.
That means, that the market is making lower highs, but no lower lows.
The effect of this pattern is this:
The sellers keep selling at the trendline.
The buyers are buying at the support, but they're making lower and lower profit.
What does that mean?
There aren't any buyers left who can push the price higher.
The SL of the buyers are directly under the support.
CONCLUSION:
If the Breakout occurs:
- The Sellers will sell because of the trendline
- The SL of the Buyers will hit and that'll push the price lower
- The Breakout traders are getting in
Never forget: The more squeezed the market is, the more explosive the breakout will be.
Thanks and good luck :)!
The market is in a downtrend.
As you can see the market is in a descending triangle.
That means, that the market is making lower highs, but no lower lows.
The effect of this pattern is this:
The sellers keep selling at the trendline.
The buyers are buying at the support, but they're making lower and lower profit.
What does that mean?
There aren't any buyers left who can push the price higher.
The SL of the buyers are directly under the support.
CONCLUSION:
If the Breakout occurs:
- The Sellers will sell because of the trendline
- The SL of the Buyers will hit and that'll push the price lower
- The Breakout traders are getting in
Never forget: The more squeezed the market is, the more explosive the breakout will be.
Thanks and good luck :)!