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Scallop Descending

The Scallop Descending has a scallop-like shape tilted downward with declining peaks.

Peak 1Peak 2Peak 3↓ Downtrend

Pattern Details

Category

continuation

Success Rate

69%

Average Move

-12%

Duration

2-4 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    First peak
  • 2
    Second peak lower than first
  • 3
    Third peak lower than second (optional)
  • 4
    Curved shape tilted downward

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter short position when price breaks below nearest trough
  • ✓
    Volume should increase on breakdown
  • ✓
    Target = Height from peak to trough
  • ✓
    Stop loss above nearest peak
Trading Tips
  • Similar to rounding top but tilted downward
  • Each peak lower than previous
  • Continuation of downtrend

Statistics

Breakout Statistics
Bullish Breakout31%
Bearish Breakout69%
Performance Metrics
Average Rise+4%
Average Decline-12%
Pullback Rate13%