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Descending Triangle Pattern

The descending triangle is typically a bearish continuation pattern characterized by a flat lower support line and a downward-sloping resistance line. It shows sellers becoming more aggressive while buyers hold a fixed support level.

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Key Characteristics

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Flat horizontal support line
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Falling resistance line (lower highs)
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At least two touches on each line
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Volume typically decreases during formation
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Breakout usually downward (70% of cases)
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Target equals pattern height
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Can appear in uptrends or downtrends
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Duration typically 1-3 months

Trading Tips

  • Enter on breakdown below support with volume
  • Stop-loss above the last swing high
  • Target is pattern height subtracted from breakdown point
  • Be prepared for false breakdowns

Signal Strength & Reliability

Descending triangles break downward approximately 70% of the time. The pattern is most reliable when it appears during a downtrend as a continuation pattern. Upward breaks can occur and should be traded accordingly.

Descending Triangle FAQs

Common questions about the descending triangle pattern

While descending triangles typically break downward (70% of cases), they can break in either direction. The pattern is more reliable as a bearish continuation in an existing downtrend. Always wait for actual price action confirmation.

For a downward break, enter short when price closes below support with increased volume. Set stop-loss above recent swing high. Target is the pattern height (measured at widest point) projected down from the breakdown.

In a descending triangle, one line is horizontal (support). In a falling wedge, both lines slope downward (converging). Falling wedges are typically bullish reversal patterns, while descending triangles are typically bearish continuation.

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Disclaimer: Charted provides technical analysis for educational purposes only. This is not financial advice. All trading involves risk. Always consult a licensed financial professional before making investment decisions.

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