Descending Triangle Pattern
Flat support with falling resistance above. Usually breaks downward in a prevailing downtrend.
Trading rules at a glance
- Entry
- Short on break and close below the flat support.
- Stop Loss
- Above the most recent lower high or above the descending trendline.
- Target
- Triangle height projected downward from the break.
How the Descending Triangle forms
Price repeatedly tests a horizontal support while each bounce creates a lower high. Volume typically declines as the triangle narrows, then surges on breakdown.
How to trade it
- Look for it inside a downtrend, not at the bottom of a deep selloff.
- Confirm multiple touches on the flat support and the descending upper trendline.
- Short on a confirmed close below support.
- Avoid entering mid-pattern — breakouts are where the edge lives.
Common mistakes to avoid
- Shorting too early before support breaks.
- Assuming all triangles resolve in the trend direction (false break are common).
- Failing to watch for bullish divergence that can invalidate the pattern.
Real-world example
EUR/USD descended through a clear descending triangle in Q3 2014 before breaking support at 1.3500 and eventually falling to 1.05 by March 2015.
Best timeframes
The Descending Triangle works best on 1H, 4H, Daily charts. It can appear on lower timeframes but signal reliability drops significantly below the 1-hour chart.
Related patterns
Ascending Triangle
A flat resistance with rising support below. Typically breaks upward in an existing uptrend.
Bull Flag
A sharp rally (the pole) followed by a tight, downward-sloping consolidation (the flag). Breaks higher to continue the rally.
Bear Flag
Mirror image of a bull flag. Sharp decline (pole) followed by an upward-sloping consolidation (flag). Breaks downward.
Cup and Handle
A rounded base (the cup) followed by a shallow pullback (the handle), then a breakout to new highs. A William O'Neil classic.