Rajandran R Follow Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

Descending Triangle Pattern in IDFC

August 2, 2008 29 sec read

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Stock : IDFC

CMP : 97.5

IDFC is showing a deceding Traiangle Pattern in IDFC. Maximum target can extend anywhere upto 100-103

Breakout looks possible only above 107. But the downside is looking dangerous and may extend upto 78.

So beware of this stock if you are holding this stock. Strong Supports near 90. Please view the sample chart as shown below.

Charactersitic of Decending Traiangle Pattern

With descending triangles, trend lines converge with a horizontal trend line for lower support, and a negative sloping resistance trend line.

Descending Triangles offer a clearer picture of potential breakouts. Since the lower support level is horizontal below, and upper support is descending downward, the pattern suggests that the stock trend is still bearish and the breakout will likely be bearish