How to spot a Descending Triangle
- A horizontal support touched at least twice
- A falling resistance line joining lower highs
- The range gets tighter over time
- Usually breaks downward, though not always
What the Descending Triangle tells you
Each lower high shows sellers becoming more aggressive. Buyers defend one price, but each test weakens it.
How traders use it
- Enter short on a close below support, ideally with higher volume
- Or wait for a retest of the old support as resistance
- Place the stop above the last lower high
- A common target is the height of the triangle projected down
Common mistakes
- Shorting before the breakdown
- Ignoring an upside break of the falling line
- Buying the support just because it held before
See it on a real chart · EP 03Trend and Trendlines: How to Draw ThemWatch the free lesson →
Questions about the Descending Triangle
Is a descending triangle bearish?
It is usually considered bearish because of the falling highs. Confirmation comes on a close below support.
Can a descending triangle break up?
Yes. A close above the falling resistance line cancels the bearish idea.
For education only, not financial advice. The chart is an illustration of the pattern, not real market data. No pattern works every time; always use a stop-loss.