Descending Triangle

A bearish continuation pattern with a flat lower support line and a declining upper trendline, indicating distribution and building pressure for a downside breakdown.

The descending triangle is the bearish mirror of the ascending triangle. Price makes a series of lower highs (declining upper trendline) while repeatedly testing the same horizontal support level (flat lower trendline). The declining highs indicate that sellers are becoming more aggressive and buyers are being exhausted at the support level.

Each time price tests the flat support, buyers defend it — but with less enthusiasm. Meanwhile sellers are entering lower and lower, putting progressively more pressure on the support floor. When that floor finally gives way, the selling can be swift as stop-loss orders and bearish traders pile in simultaneously. The target is measured from the widest part of the triangle projected downward from the breakdown point.

Like the ascending triangle, the descending triangle can appear in an uptrend as a reversal pattern, in which case the downside break is more likely. Descending triangles in downtrends are classic continuation patterns. False breakdowns — where price briefly penetrates support then recovers — occur with some regularity and represent bear traps that can be powerful springboards for recoveries.

The descending triangle is sometimes confused with the falling wedge because both show price declining in a narrowing range. The distinction is the lower trendline. In a descending triangle, the lower boundary is flat — a specific horizontal support level that bulls defend while sellers systematically push the highs lower with each swing. In a falling wedge, both trendlines slope downward and converge. That flat floor is what makes the descending triangle bearish: support is being persistently tested from a position of weakening demand, and when it breaks, the measured-move target is well-defined. A sloping floor alongside a sloping ceiling means you're looking at a falling wedge — a bullish pattern despite its appearance.

This definition is for informational and educational purposes only. Nothing on Finance Compass constitutes financial, investment, or trading advice. Always conduct your own research and consult a qualified professional before making financial decisions.