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Descending Triangle

The Descending Triangle is a bearish continuation pattern with a horizontal support line and a descending resistance line.

Horizontal supportFalling topDescending Triangle: Falling top + Horizontal support → Break → Decline

Pattern Details

Category

continuation

Success Rate

71%

Average Move

-14%

Duration

2-3 weeks

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Horizontal Support: Flat bottom line
  • 2
    Descending Resistance: Falling top line
  • 3
    Volume typically decreases during formation

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter short on breakdown below support
  • ✓
    Volume should confirm breakdown
  • ✓
    Target = Height of triangle subtracted from breakdown point
  • ✓
    Stop loss above descending resistance line
Trading Tips
  • Most reliable in downtrends
  • Support level often tested multiple times
  • Volume spike on breakdown is crucial

Statistics

Breakout Statistics
Bullish Breakout29%
Bearish Breakout71%
Performance Metrics
Average Rise+9%
Average Decline-14%
Pullback Rate15%