Descending Triangle
Chart PatternsA bearish continuation pattern with a flat support line and a falling trendline connecting lower highs. Price typically breaks downward through the flat support.
What Is a Descending Triangle?
The descending triangle is the bearish counterpart of the Ascending Triangle. It has a flat (horizontal) Support line at the bottom and a falling trendline connecting progressively lower highs at the top. Price compresses into the narrowing space between these lines.
The lower highs indicate that sellers are getting more aggressive, willing to sell at increasingly lower prices. The flat support shows consistent demand at that level, but each rally is weaker than the last.
How to Trade It
The pattern typically resolves with a downside Breakdown through the flat support. On GBP/USD, enter short when price closes below the support line. Place a stop above the most recent lower high. The target is the height of the triangle projected downward from the breakdown point.
Like ascending triangles, descending triangles can break the other way. If price breaks above the falling trendline, the bearish thesis is invalidated.
Descending Triangle in Context
During a Downtrend, the descending triangle acts as a continuation pattern, suggesting the decline will resume after the consolidation. However, it can also form at market tops as part of a distribution phase. Regardless of the prior trend, the key signal is the direction of the breakout. Confirm with volume: strong volume on the breakdown validates the signal.
Related Terms
Ascending Triangle
A bullish continuation pattern with a flat resistance line and a rising trendline connecting higher lows. Price typically breaks upward through the flat resistance.
Symmetrical Triangle
A continuation pattern where converging trendlines connect lower highs and higher lows, creating a narrowing range. It typically breaks in the direction of the prior trend.
Bear Flag
A bearish continuation pattern where a sharp decline (the flagpole) is followed by a brief upward-sloping consolidation (the flag). Price typically breaks downward to continue the trend.