In this first-ever two minute Tuesday video.
I'm going to show you why ascending and descending, triangles act, the
way that they do.
Welcome back to the channel, everybody.
My name is Artie.
And this is the moving average a show where we discuss everything day,
trading to keep you profitable on a consistent basis.
So majority of the videos on this channel, our strategy videos where I
give you rules for entry and exit.
This video is going to be a two minute informational video on why
price action, does these types of things, and why you should expect
the price to continue down or continue up depending on the shape of
the triangle other?
I have done this before.
So let's put two minutes up on the clock and let's get into the
charts.
The fluctuation of price going up and down is literally just a battle
between buyers and sellers constantly day in and day out.
Think about the movie 300, when they were stuck in that little
Corridor holding the wall.
There's there's real behold.
They were holding their position while they were constantly being
attacked and attacked and attacked.
That's the same concept.
You get here with buyers and sellers.
That's why I'm such a huge fan of support and resistance levels as
well as trendlines.
It shows me the power of the sellers versus the power of the buyers.
And as the price goes down getting to where the buyers want to push
the price up.
They push the price up and are met by the sellers, continuing to
The price down this happens.
Here, here here, here and the sellers are getting more powerful as
they keep pushing the price down here to where the buyers are pushing
the price up.
This right here is known as a descending triangle.
A typical graphic looks like this where the price is perfectly
rejecting off of the support level and the trendline, but in real
life, you do have break outs and tests out of that range before it
fully goes.
Down a lot of people have the misconception that support and
resistance levels, get stronger over time and that is not the case.
Because as you can see, it depicted here, the sellers are putting
selling pressure on the buyers and they keep hitting this level.
They keep hitting their wall of Defense, making it weaker, and weaker,
and weaker, and as the price starts to narrow, that's when we start
seeing the break out of that range.
You see a few of these last-ditch efforts to push the price.
It's up, but eventually, they break through this wall of sellers,
which pushes the price down to the next support and resistance level.
And the reason why it will go down to that next level is because
there's a lack of buyers here to push the price up.
Then once the sellers do push the price down to that level.
They are met with a new wall of buyers and they're going to try to
break through that barrier as well.
And that is how downtrends are formed.
A massive amount of sellers.
Continuing to push the price down breaking past the buyers defenses
and walls that they have set up.
Eventually getting exhausted to where the buyers start gaining
strength and it falls into a period of consolidation where it is an
equal battle between the buyers and the sellers.
One last-ditch effort by the sellers to break through that buyers
barrier.
And then eventually losing the battle causing the buyers to start.
Getting the upper hand on the seller's pushing against there.
Barriers and eventually breaking through their defenses up to the next
resistance zones.
So when you're looking at ascending and descending triangles and the
picture, perfect images that you get on the internet.
Like these two that I shared on my telegram group, you have to take
those with a grain of salt, the concept is sound but in real life, it
does not look perfect.
There are breakouts above and below those zones, which is why having a
healthy stop losses.
Going to be beneficial for you long term, and not get stopped out of
positions when you get spikes like this, but using all of the
strategies that I teach on this channel with support and resistance
and trend lines.
You will start to see structure in these markets like you never have
before.
I'm pretty sure I went over the two minutes, but that is a general
explanation.
So you have a better concept of why and how ascending and descending,
triangles work in the markets.
Now, if you guys want to learn how I drop my support and resistance
levels,
And how I drop my trendlines.
Check out this video right here, and if you got some value out of this
video, you found it interesting and you want to see more two minute
Tuesdays, make sure you're dropping a like, so that I know and
subscribe to the channel if you have not already.
Thanks so much for watching and we'll see you in the next video.