While descending triangles are commonly thought as bearish, it can also break upwards. According to the pattern site, " Look for triangles with upward breakouts near the start of an uptrend".
Pros:
- Based on the HTF context, PAY has been on a sustained downtrend for quite sometime so upward breakout of descending triangle (i.e. as a reversal instead of continuation pattern) is possible.
- Now it's resting on a higher low support.
- Also 1H and 4H bullish divergence on the macd
- Risk:reward seems good.
Cons:
- descending triangles break down 64% of the time.
Pros:
- Based on the HTF context, PAY has been on a sustained downtrend for quite sometime so upward breakout of descending triangle (i.e. as a reversal instead of continuation pattern) is possible.
- Now it's resting on a higher low support.
- Also 1H and 4H bullish divergence on the macd
- Risk:reward seems good.
Cons:
- descending triangles break down 64% of the time.
Trade active:
took a while but trade looking good :) taking partial profits at previous highs
Trade closed manually:
Didn't get as high as the ultimate target for this setup. I closed the position in profit when I started see bearish divs. However, it's still in a short-term uptrend with this higher low formed.