Descending Triangle
BearishReliability: HighAlso called · falling triangle
Highs keep falling above a flat support line.
How to spot it
- The lows are pinned at one level
- The highs keep stepping down
Why this shape forms
The floor holds at one price while the highs keep dropping. Buyers will only step in cheaper each time, and that is the record.
Where it actually means something
Often a waypoint inside a downtrend. Near a major low, though, it resolves upward more often than the name suggests.
What else to check
A close below the flat support with volume behind it. A failed retest from underneath makes it clearer still.
This means you're wrong
An upside break of the falling trendline (the line of highs).
The mistake beginners make
Expecting a bounce because of the support line. Selling pressure is stacking up.
Easy to confuse with
Despite the name it does not have to break down. Do not pre-commit to a direction; follow the side that actually gives way.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.