Technical
Analysis
of the United States
Cannabis Market
198
Descending Triangle:
A descending triangle is very much like the ascending triangle we talked about, except flipped around. In other words, you will spot this on the chart where there is a line at the bottom known as support that doesn't break followed by highs that over time become lower and lower and gravitate towards the support line making a triangle. Unlike the ascending triangle pattern, the descending triangle pattern is considered bearish. What to look for with this pattern if long in the position is that the bottom of the triangle aka the support holds. When the prices get pushed down further and the bottom of the triangle breaks to the downside, that is your queue to exit your position or go short if you are comfortable doing so. You should note, that this particular pattern is not guaranteed to be bearish, and in fact could break up to the upside negating the bearish charting pattern that it has been in. When the entire cannabis sector has bullish momentum it can sometimes help otherwise potentially bearish patterns be short lived. Regardless, when you see this pattern occur you should make an exit or trim strategy for your holdings just in case the bears get a hold of the stock and drive prices lower.