follow-up of a descending triangle formation on an index In NSE:BANKNIFTY there is failure of descending triangle pattern. When a descending triangle fails, it often leads to a sudden reversal or consolidation rather than a continuation of the prior downtrend. This reversal could result in a period of sideways movement or even a bullish breakout if buying pressure persists. A sustained rally above the upper trendline of the triangle could indicate a shift in momentum and potential bullish continuation.
On the other hand, if the index fails to maintain upward momentum and returns to test the lower boundary of the triangle, it might indicate renewed selling pressure and a potential breakdown.
Traders should always employ proper risk management techniques, such as setting stop-loss orders, to mitigate losses in case of pattern failures or unexpected market movements.
