How to Trade a Descending Triangle Pattern ?
A Descending Triangle is a bearish chart pattern used in technical analysis that is created by drawing one trend line that connects a series of lower highs and a second horizontal trend line that connects a series of lows.
The stock is in a clear descending triangle pattern and gave a false breakout around 4300 levels & got rejected around 4100-4200 level which acts as a support zone.
We can short only below that level.
Our Target will be the height of the triangle which is of 1180 points.
Our Stop loss will be the horizontal trend line as if the stock goes above it the trade will be inactive.
Stay Safe & Trade Safely.
The stock is in a clear descending triangle pattern and gave a false breakout around 4300 levels & got rejected around 4100-4200 level which acts as a support zone.
We can short only below that level.
Our Target will be the height of the triangle which is of 1180 points.
Our Stop loss will be the horizontal trend line as if the stock goes above it the trade will be inactive.
Stay Safe & Trade Safely.
Trade active:
Chart Update - Stock faced heat at the previous breakdown level. Now below our levels. ADX & Volumes are looking good.