What is a Descending Triangle?

What is a Descending Triangle?

A descending triangle is the bearish counterpart to the ascending triangle. Sellers defend a falling trendline while horizontal support absorbs demand until it breaks.

Pattern Anatomy

• Flat support: Price tests the same floor multiple times.
• Lower highs: Each bounce is sold sooner, drawing a descending trendline.
• Breakout trigger: A decisive close below support with expanding volume confirms the pattern.

Execution Tips

• Align trades with the dominant downtrend to keep probabilities on your side.
• Place stops above the latest lower high to invalidate the structure.
• Project the pattern height below the breakout to frame reward to risk.
• Scale out near prior swing lows or measured move targets.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.