What is a Descending Triangle?
Descending Triangle
Forex Trading Glossary
Quick Answer: A descending triangle is a bearish continuation pattern with horizontal support and declining resistance. It shows sellers gaining control, typically breaking downward.
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.
Trap Awareness
False breakdowns are common. Validate the move with strong momentum and avoid chasing if price immediately snaps back above support.
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.
Related Terms
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