Descending Triangle Chart Pattern — How to Spot and Trade It

Flat support below, falling resistance above — sellers press lower into a floor.

In plain words

Sellers keep pushing price down onto a floor while each bounce is weaker.

What the classic books say

The Descending Triangle is a continuation pattern with reference reliability High and illustrative behaviour of ~60-70% breakdown in trend direction (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). More reliable as a continuation within a downtrend.

Level by level

Beginner

Sellers get stronger each bounce while the floor holds — until it may break.

Intermediate

Lower highs against flat support show supply pressuring demand; a breakdown often follows.

Advanced

Bearish coil; breakdown reliability rises with volume and a failed retest of broken support.

Trade plan (educational template)

• Entry: On a confirmed close below the flat support.
• Stop-loss: Above the most recent lower high.
• Target: Height of the triangle projected down from the breakdown.
• Check the numbers with the Risk-Reward calculator before any entry.

Common beginner mistakes

• Front-running the breakdown
• Ignoring false breaks

Practise it now

• ▶ Draw the Descending Triangle with live trendlines and a ghost forecast
• 📖 Full lesson in the Learning Hub

_Educational content only — not financial advice. Historical behaviour never guarantees future results._