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Descending Scallop

bearish

Definition

An inverted-J rounded rally and rollover within a downtrend.

Psychology

A rounded lift that rolls back over — the downtrend resumes.

Real-life analogy

💡 A wave curling over before it crashes.

Expected direction

down

Entry / Stop / Target

Entry: On the break below the scallop's origin. · Stop: Above the scallop's high. · Target: Scallop height projected below the break.

Historical behaviour

Mirror image of the ascending scallop.

Illustrative success rate

~60% continue downward · Medium reliability

Common beginner mistakes

  • Buying the rounded lift in a downtrend

Quick quiz — did you understand?

1. Is the Descending Scallop generally considered bullish, bearish, or neutral?

2. After a confirmed Descending Scallop, the expected direction is usually:

3. Which is a common beginner mistake with the Descending Scallop?

Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.