This pattern important role in the breakout to the downside (Some analysts believe that increased volume is not all that important).We always consider the strength or weakness of volume as being the "straw that stirs the drink."
Let see what will happen here minutely and something we can conclude.
How can we trade descending triangles?
Let's check below will...
TAIL, This is a reversal of prior trend pattern that shows up as one candle reaching out well beyond normal price action. Sometimes referred to as a Hammer which is used to spot signs of a reversal indication.
For Example, 1 Tail at a value low and Psychologically, this can signal exhaustion in the selling mentality and a developing appetite for long exposure...
4 tails at the value high with one excess and 2 tails found at the value low with one excess. The presently fromed tail is not at excess but its a breakdown channel.
Remarkable points, recently created tail has enough shadow as comparted all others.
Therefore, Possible to fall more OR create a series of tails.
Check out EXIDEIND. A Trade setup is possible very soon. Either a breakout or a breakdown the triangle.
This is NOT an investment recommendation nor I am a SEBI Registered Technical analyst.
Invest only after consulting your financial adviser.
The Investment Points:
It can be observed from this weekly chart that in the bear markets of 2011 and 2015, the Index formed bottoms near 200 EMA. Those yellow circled marked on the chart proved to be excellent buying/investment opportunities. If I have to load my money for greatest investments, it will be at the same point.
Nifty Took Support...
Rising Three Method - Bullish Continuation Pattern
A bullish continuation candlestick pattern that is used to predict the continuation of the current uptrend. This pattern is formed when the candlesticks meet the following characteristics:
1. The first candle in the pattern is a long White/Green candlestick within a defined uptrend.
2. A series of descending...