Descending triangle
bearish · continuation pattern
A descending triangle is a bearish continuation pattern with horizontal support and a descending trendline of lower highs. It appears in downtrends and signals continued selling pressure. A close below support on expanding volume confirms the pattern.
Formation rules
- Prior trend is down
- Horizontal support tested at least twice
- Descending trendline of at least three lower highs
- Breakdown on expanding volume
How to trade it
Short on confirmed close below support. Stop above the most recent lower high. Measured target = triangle's height projected below the breakout. As with ascending triangles, late-stage failures are more frequent — the cleanest signals come in the first two-thirds of the formation.
Common pitfalls
- False breakdowns are common in low-volume sessions
- Pattern in an uptrend is unreliable
Statistical context
Bulkowski: ~64% downside breakout rate in bear regimes; less reliable in bull markets.
Related patterns
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