A descending channel is a chart pattern formed from two downward trendlines drawn above and below a price representing resistance and support levels. The descending channel pattern is also known as a “falling channel” or “channel down“. The more such reversals occur, the more reliable the pattern.
There are three scenarios the price rises after breakout, the price retests the trendline and that trendline now becomes support in both situations there is a good buy opportunity. the third scenario is the breakout is fake and our stop loss hits.
this is not investment advice and I am not sebi registered this is just for my own educational reference.
it was an encouraging post. I am holding @ 746 . I like the way breakout has happened after double abc pattern. I also like the recommendation to take profits as trader at just below previous resistance
atifsharif7865
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@natsbabu, that's a great buy, thanks for commenting.