Chart pattern
Descending Triangle explained
A descending triangle has a flat support line at the bottom and a falling resistance line above. It shows sellers making lower highs while buyers defend one level, and it often resolves downward, though not always.
How to spot it
- Find a horizontal support level that has been tested at least twice.
- Mark a falling trendline through at least two lower highs.
- Watch the range narrow as the lines converge.
- Look for a close below support, ideally with stronger volume.
What invalidates it
The pattern is invalidated if price closes above the falling trendline, or if a break below support fails and price recovers back inside.
Common mistakes
- Treating it as a guaranteed bearish signal
- Entering on a wick through support
- Drawing lines to fit the pattern rather than the touches
- Ignoring a strong uptrend on the larger timeframe
Questions
- Is a descending triangle always bearish?
- No. It leans bearish because of lower highs, but price can break upward through the falling resistance.
- What makes a breakout more credible?
- A close beyond the level, clear follow-through and no immediate return into the triangle. None of these is a guarantee.
- Can it appear in a range?
- Yes, but in a clean sideways range it is usually just a range. The falling highs are what define the triangle.
Related patterns
See how patterns are applied to a specific instrument in the market guides.
Educational content, not financial advice. Chart patterns describe what price has done and do not predict what it will do next.
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