XRP / USD Descending Triangle (bearish). Pivot points.

XRP / USD Formed a downward triangle (bearish). Even now, the price is global at mega XXX. There was a breakthrough of the triangle support. The price was returned back to the triangle.

Perhaps now they will make a + 28% wave in the very corner of the triangle. To adjust the price to a downtrend triangle. (Red line). A break and consolidation of the price above the downtrend (the upper border of the triangle) will mean a coin growth. This is waiting for most people, everyone wants growth and easy money. And if everyone is waiting for growth, then ....... They can make a deceitful feint.

In 90%, such formations make their way down. This is a bear formation. It is very rare that descending triangles price breaks up, and asset growth begins. I observed this only on coins with low liquidity, where price manipulation by one person is completely carried out due to the excess of money in his direction. On all large assets, such formations work out as it should be.

  Sometimes they make deceitful upward movements so that the crowd believes in a price increase. Then the price turns around and the price of the triangle decreases in most cases by the height of the widest part of the figure. In this formation, we have 77%.


  If this happens and the price on this coin will decrease, I put a downward channel with trending on this triangle, so that it is clear how to trade and where there will be a price stop.

Also, unlocking 1 billion XRP coins is not a good sign.
______________________________________________
Descending triangle

If you look at the “Descending Triangle” figure from a psychological point of view, you can understand why the price is forming such a formation. At the support level, a lot of imaginary purchase orders settled, the bulls expect that from this level (support of the descending triangle) the price will go up. Every time the price drops to this level, the bulls buy and thereby make the price rise. With growing supply and constant demand, the price can not stay in place and will inevitably fall.

Perhaps a major player places real and false orders to keep the level. He holds the level and raises the price from him (making waves) and resets the position. With each wave of raising prices, there is less and less pressure, as sellers who bought earlier in the hope of great growth are crushing. (until the figure is identified as a "Descending Triangle"). When a major player drops his position, holding a level no longer makes sense to him, orders are removed - the level breaks and the price dives. Naturally, a major player can help break through the support level with sales and “crush” with large orders from above, thereby strengthening downward movements. This is more pronounced when a major player has an interest in recruiting a position for a given asset. Then, above the support level, the entire position is not reset, and part is left to simulate panic and lower prices.
________________________________
Features to which you should pay attention when forming this model of a figure.


1) The “downward triangle” has a stronger development in the bearish (downward) market compared to the upward market, because the angle of the support line is downward, that is, sellers are more persistent. And the price, more often, breaks the horizontal support line.

2) The “downtrend” in most cases occurs on a downtrend and is a figure of the continuation of the trend, however, sometimes it can serve as a figure of a reversal of the uptrend. Therefore, sometimes, even in a bull market, it is considered a bearish signal.

3) The price waves should form a clear line of support. Naturally, it may not be perfectly horizontal and minimum levels may vary slightly, but it should be a horizontal support line with at least two touches.

4) On the reverse side of the waves, the price should draw a downward resistance line. The price should touch it at least twice. Regardless of the number of waves, peaks in prices should go down with each new wave.

5) Trading volume during the formation of the figure is reduced. But at the very end of the figure, the volume grows significantly. Especially near the support level. The peak volume occurs when the support level is broken.

6) When the price crosses the support line, the figure comes to an end. Almost always, the intersection of support is accompanied by a high trading volume.

7) Support turns into resistance, and after the intersection of support, the price may reflect on the new resistance before the downtrend.

8) The goal of working out the figure is equal to the height of the widest part of the "Descending Triangle" (price range from support to the highest peak). We measure the distance of the widest part of the figure and debug it down at the point of breakthrough of the triangle.

Trade closed: target reached:

+64% short after breaking down a triangle