Descending Triangle
A triangle pattern formed by a flat support line and a series of falling highs. Price meets buyers at the same level each time, while sellers step in earlier on every bounce. It is most often read as a continuation pattern within a downtrend, and it completes with a close below the flat line.
How it forms
- Prior move. The pattern is most often seen as a pause within a downtrend. Less often, it forms at the end of a rise, where it is read as a reversal pattern.
- Flat support. Price bottoms at roughly the same level at least twice and bounces. The lows sit within about 1% of each other. The line joining them is horizontal.
- Lower highs. Each bounce ends at a lower high than the one before. Joining at least two highs gives a downward-sloping resistance line.
- Narrowing. The two lines converge to the right. At least four touches in total (two on each line) are needed; five or more make the pattern clearer. Volume often falls during this phase.
- Breakout zone. The break usually comes before the apex where the lines meet, roughly in the last third of the triangle. If price drifts all the way into the apex, the pattern starts to lose meaning.
- Completion. The pattern is complete when price closes below the flat support. A wick below the line that closes back above it is not a breakdown.
The thresholds here are approximate values commonly used in textbooks, not strict rules.
What it suggests
The flat line shows buyers defending the same level again and again. The lower highs suggest sellers are stepping in lower each time. Price is squeezed between the two. Buying at the flat level may be running out a little more with each test.
A breakdown is read as buyers no longer being able to defend that level. Before completion, though, the direction is not settled. If price breaks above the falling resistance line, the picture changes completely.
When it strengthens, when it weakens
Strengthens
- A clear downtrend before the pattern
- The flat line lining up with a support zone
- More than two touches on each line
- Volume falling during the pattern and rising at the break
- The break coming in the last third, before the apex
Weakens
- Few touches, or lows that are not at the same level
- The break coming on low volume
- Price drifting all the way into the apex
- A strong support zone just below the flat line
- False breakdowns, where a wick crosses the line but the close stays above
The MarketLevelMap view
How it relates to zones
The flat side of a descending triangle is often a support zone on the map itself:
- If the flat line lines up with a support zone, price can be seen testing that zone again and again. Buyers in the zone may be thinning out with each test. A break then means losing a zone, not just a line.
- If the lower highs stay below a resistance zone, it suggests sellers are stepping in without waiting for price to reach that zone.
- If a support zone sits just below the break, there is an area where price may react again soon. It is a more realistic reference than the measured move.
After the break, price sometimes returns to retest the flat line from below. If the line lines up with a support zone, that zone may now act as resistance. If price stays inside the zone on the retest and does not close above it, the break is considered more solid.
If the flat line does not match any zone on the map, the pattern still stands, but the break may carry less weight.
When it completes
Close below the flat support.
When it is invalidated
Before completion: If price closes above the falling resistance line before breaking the flat line, the series of lower highs is broken and the pattern is considered not to have formed.
After completion: Even after a close below the flat line, if price climbs back into the triangle and closes above the last lower high, the bearish scenario is considered invalid. False breakdowns like this sometimes lead to sharp moves up.
Often confused with
- Symmetrical TriangleThe lower line is not flat: lower highs and higher lows converge.
- RectangleThe highs do not fall: price moves between two flat lines.
- Falling WedgeBoth lines slope downwards, and it is usually read as bullish.
For general information only. Not investment advice.Last updated: