The Descending Triangle is the bearish mirror of the Ascending Triangle — a continuation chart pattern formed by a flat horizontal support line at the bottom and a downward-sloping resistance line at the top. Price oscillates between the two lines, making progressively lower highs while each decline hits the same flat support. The pattern narrows until price breaks down below support, typically with force.

How to Identify

• Flat support: a near-horizontal line connecting at least two price lows at the same level
• Falling resistance: a downward-sloping line connecting at least two lower highs
• The two lines converge — the pattern narrows into a right triangle pointing left
• Price should touch each line at least twice (ideally 3+ touches) before the breakdown
• Each bounce is weaker than the previous — sellers are willing to sell at increasingly lower prices
• Volume contracts during the pattern and spikes sharply on the breakdown
• Breakdown below the flat support confirms the pattern
• Price target: measure the widest height of the triangle and subtract from the breakdown point
• Pattern typically takes 3–12 weeks to develop

Market Psychology

The flat support represents a demand zone — buyers defend the same price level repeatedly. But the falling highs reveal diminishing buying interest: sellers are selling at progressively lower prices, forcing buyers to absorb more and more supply at ever-lower ceilings.

When the support line finally breaks, it signals that sellers have overwhelmed buyers at that level. Buyers who placed stop-losses below support are automatically stopped out, adding sell volume to the cascade. The release of pent-up selling pressure often produces a fast, sharp decline.