The descending triangle pattern is a bearish chart pattern. It is the opposite of the ascending triangle pattern. In this, the swing lows are at or about the same level whereas there are consistently lower highs. It forms when sellers are getting stronger and buyers are weak. You can take advantage of price fall when the swing lows are broken. You can see the image of the descending triangle pattern for a better understanding.

 

What should be the target and stop loss in stock using a Descending triangle pattern?

         Wait for the price to break down the descending triangle pattern. Downtrend line in the direction of the original Downtrend. Place an order for the sell-side & stop loss should be at the level where the high of the descending triangle pattern and lower trend line reaches its highest point. For target, our target should be double 1-2% of the stock price. So that we can make a good profit.