Trading term
What is Descending triangle?
A descending triangle is a bearish continuation pattern: a flat horizontal support line on the bottom, with a falling trendline of lower highs above it. As the lower highs press price down against the floor, pressure builds — and it usually resolves with a breakdown through the support.
A descending triangle is the mirror of the ascending one. Price keeps finding buyers at the same horizontal support, but each rally peaks lower than the last, drawing a falling resistance line above. The two lines converge toward the bottom-right corner. That pattern of lower highs against a flat floor shows supply strengthening — sellers are willing to accept less each time, pressing price toward the support.
It's a continuation pattern, usually appearing within a downtrend and resolving by breaking down through the flat support, often on rising volume. The measured target projects the height of the triangle downward from the breakdown. It can fail — a break up through the falling trendline negates it — but the base case is a bearish breakdown. Watch the flat support giving way as the trigger.
A flat support floor with lower highs falling toward it. The lower highs show sellers strengthening — it usually breaks down through the flat bottom.
For example
A stock repeatedly holds $50 support while its rallies fade from $54 to $53 to $52 — a descending triangle. It then breaks below $50 on heavy volume, projecting a move toward about $46 (the roughly $4 height subtracted from $50).
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A descending triangle gives bears a clean, single level to watch — the flat support — with the falling highs visibly showing sellers taking control before the break. That makes it an early, defined-risk way to position for the continuation of a downtrend, with an obvious invalidation if support holds and price breaks up instead.
⚠ Direction isn't guaranteed
Assuming a descending triangle must break down is the trap. It leans bearish, but it can break up — especially against a strong uptrend, where the flat 'support' is really accumulation. The signal is the confirmed break of the flat support; a break the other way invalidates the bearish read.