Technical Analysis
Descending Triangle
A bearish continuation pattern with a flat support bottom and declining resistance highs, signalling distribution before a breakdown.
Key rules
- Flat support bottom with at least 2 touches
- Declining resistance line with at least 2 lower highs
- Volume contracts during formation, expands on breakdown
- Target = breakdown level − triangle height (widest point)
- Pattern fails on a close above the descending trendline
A descending triangle forms when price creates a series of lower highs against a flat horizontal support level. Sellers are progressively offering at lower prices while buyers defend a fixed level — until selling pressure overwhelms the support.
**Structure** - Lower boundary: flat horizontal support (at least 2 touches) - Upper boundary: declining trendline connecting lower highs (at least 2 touches)
**Breakdown** A close below the flat support level on expanding volume is the entry trigger. The measured move is the height of the triangle subtracted from the breakdown level.
**Context** Most reliable when it appears in an existing downtrend as a continuation pattern. Can occasionally form at market tops as a topping formation.