HOW TO USE DESCENDING TRIANGLE AS A SETUP?This is Berger Paint stock. In this stock Descending triangle is forming.
* What is the Descending triangle pattern?
- A descending triangle is a chart pattern used in technical analysis created by drawing one
trend line connecting a series of lower highs and a second horizontal trend line connecting a
series of lows.
A regular descending triangle pattern is commonly considered a bearish chart pattern or a
continuation pattern with an established downtrend. However, a descending triangle pattern
can also be bullish, with a breakout in the opposite direction, and is known as a reversal
pattern.
So here it is in Bandhan Bank support is at 190. and stock is in the accumulation phase from the long term. From above we will connect lower high and down we make a support zone. Now stock is in stock and ready to fly.
* How will we know that stock is ready to move using descending triangle?
- Lower High
- Time at support zone
- Bullish Candle at support
All this step is to be followed. Then it is the best setup.
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