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Descending Triangle
Signal
Bearish
Win Rate
66%
Avg Move
-12.0%
Reliability
High

Pattern Definition

The descending triangle has a flat support line and a declining resistance line: lows cluster near the same level while highs make lower highs. Bears gradually take control during consolidation as they wait for a breakdown.

Market Psychology

Bears repeatedly test the same support while bulls fail to push price higher each time. Lower highs show increasingly aggressive selling; eventually support breaks.

Trading Application

Enter short on a high-volume breakdown below the flat support (win rate 66%). Stop-loss above the last swing high inside the triangle. Target = triangle height measured down from breakdown point.

Important Notes

Longer consolidation and more tests of support = more powerful breakdown. Volume should contract during consolidation and expand on the breakdown.