descending triangle on Lead hourly chart

     The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution.
     Because of its shape, the pattern can also be referred to as a right-angle triangle. Two or more comparable lows form a horizontal line at the bottom. Two or more declining peaks form a descending trend line above that converges with the horizontal line as it descends. If both lines were extended right, the descending trend line could act as the hypotenuse of a right triangle. If a perpendicular line were drawn extending up from the left end of the horizontal line, a right triangle would form. Let's examine each individual part of the pattern and then look at an example of attached lead charts.
     (1) Trend: In order to qualify as a continuation pattern, an established trend should exist. However, because the descending triangle is definitely a bearish pattern, the length and duration of the current trend is not as important. The robustness of the formation is paramount.
     (2) Lower Horizontal Line: At least 2 reaction lows are required to form the lower horizontal line. The lows do not have to be exact, but should be within reasonable proximity of each other. There should be some distance separating the lows and a reaction high between them. Here we can easily see 4 exponential lows & 2 real body lows, if the exponential is not taken in to account.
     (3) Upper Descending Trend Line: At least 2 reaction highs are required to form the upper descending trend line. These reaction highs should be successively lower and there should be some distance between the highs. If a more recent reaction high is equal to or greater than the previous reaction high, then the descending triangle is not valid. In the case of Lead chart, we can see 2 reaction highs kissing upper descending trend line.
Why this descending triangle is most important chart pattern ? because in contrast to the symmetrical triangle a descending triangle has a definite bearish bias before the actual break. The symmetrical triangle is a neutral formation that relies on the impending breakout to dictate the direction of the next move. For the descending triangle, the horizontal line represents demand that prevents the security from declining past a certain level. It is as if a large buy order has been placed at this level and it is taking a number of weeks or months to execute, thus preventing the price from declining further. Even though the price does not decline past this level, the reaction highs continue to decline. It is these lower highs that indicate increased selling pressure and give the descending triangle its bearish bias.
     conclusion -- Ascending and descending triangals are perfect chart patterns to predict the future movement of price. Read this post carefully and use it to earn some money. Thank you Jay Shriram    

Result of chart pattern

as seen in the lead hourly chart, after break out, price tumbled down heavily and now moving towards lower circuit. CMP is around 148. Rs 5 gain means 25000 rupees in single lot.As seen in the hourly Lead chart, price gave breakout and tumble down heavily. CMP is around 148 and it going towards 

Thank you, Jay Shriram.

Update 2 for Gagan Jain, 1st April 2017, 02.31 pm 

     Respective Gagan Jain, Lead hourly chart is pasted here. see it carefully. After downword breakout from first descending triangle, lead price made low around 148. After that price went in to consolidation. Now, it is again in the process of making descending triangle, which is perfect bearish chart pattern. It made two highs touching descending line of triangle and touched 2 times to support line. But when it touched second time to support line, that can not be count as 2nd time touch. It is because before touching to support line, the wave should start from descending ( upper line ) line of the triangle. so conclusion is that, price is wel within the descending triangle, made 2 touching marks to upper descending line and made 1 mark to support line. Now if it touch supportline placed at 149.45 , the triangle pattern requisites will be fulfilled and it will ready to give downward break out.

     So I request you to study the chart carefully, keep in mind that this is hourly chart and gives short term indications of the future movement of price. I you find that,' I went wrong in reading chart at some point, please suggest me the same. It will help me in my learning.'

     Thanking you, Jay Shriram.

     This is not April full 

update 3, 7th April, 02.53 pm

     See the beautiful down move by lead kissing the breakout line. Patience are paying good profits now. Thank you, Jay Shriram.