Descending triangle

What it is

A descending triangle is the mirror of the ascending triangle. It has a flat support line underneath and a falling resistance line on top. It is usually read as a continuation pattern in a downtrend and completes when price closes below support.

Why it forms

Buyers defend a specific price. Sellers keep pressing it. On each bounce, sellers step in sooner, at a lower price than before, which is what the falling highs show. Every test of support uses up some of the demand sitting there, until it runs out and price breaks down.

How to identify it

• At least two touches of a roughly flat support.
• At least two lower highs forming a falling resistance line.
• A narrowing range as the lines converge.
• Volume often contracting through the pattern and expanding on the breakdown.

What confirms it

A candle close below the flat support, preferably on higher volume. A retest of the broken support from below that fails adds confirmation.

What invalidates it

• A close above the falling resistance line.
• Repeated false breaks below support that immediately recover.

Common mistakes

• Assuming support will break. Flat support can hold many times before it breaks — or never break at all.
• Reacting to a wick. A close below support matters; a brief spike does not.
• Ignoring the trend context. In a strong uptrend, the same shape carries much less weight.
• Treating the measured move as a target. It is a reference for scale.