Descending Triangle
Also known as: Falling Triangle
Horizontal support below, falling highs on top. Sellers push price lower into the same floor – when it breaks, the move usually continues down.
How it forms
A flat lower line (support) and a falling upper trendline converge. On the downside break, volume typically picks up.
How it is typically traded
On a close below the horizontal support.
The height of the triangle at its widest point, projected downward from the breakout.
Above the most recent falling-highs line.
Where & when – and the limits
Usually continuation in downtrends but can also act as a top. As with all triangles: only the breakout counts; before it the direction is open.
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees – they fail regularly. Always manage risk with stop-loss and position size.
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