You really have to be careful when you see a new pattern forming because that pattern may simply be swallowed up by an even bigger pattern. As we can see here, there was a descending triangle
that looked completely valid up until the point that it was invalidated. However, you'll notice it never actually broke through support. This is why it's important to take other factors into consideration and wait for technical confirmations. The bearish
triangle was never confirmed, and now we are in the middle of an even larger bullish
triangle still bouncing between support and resistance
In this situation, the market was very oversold, so I was suspicious of the descending triangle
although I still included it in my ideas. I just never actually traded on it and this is why. The conditions just weren't right. I am, however, trading this bullish
triangle as the conditions for it are right.