The index is forming a Descending Pattern at the top. Horizontal Support Line and Falling Resistance Line.

Upward Breakout Performance of the Pattern is great and the failure rate is 9% which is exceptional, usually volume during the pattern is rising, after breakout the volume is irrelevant it is one of the rare patterns where after breakout volume doesn't matter.

In Downward Breakout Performance is good and the failure rate is high nearly 27%, volume during pattern declining.

Minimum 5 touches is necessary for it to be a perfect pattern. Here we have seen 5 touches so the pattern is completed. 

Breakout on any side can be an opportunity to enter

Descending Pattern

Jul 31 2021

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