{"id":9111,"date":"2025-02-27T08:39:09","date_gmt":"2025-02-27T08:39:09","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=9111"},"modified":"2026-08-11T09:07:35","modified_gmt":"2026-08-11T09:07:35","slug":"descending-triangle-pattern-in-technical-analysis","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/descending-triangle-pattern-in-technical-analysis\/","title":{"rendered":"Understanding the Descending Triangle Pattern in Technical Analysis\u00a0"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#what-is-the-descending-triangle-pattern\">What is the Descending Triangle Pattern?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#key-characteristics-of-the-descending-triangle-pattern\">Key Characteristics of the Descending Triangle Pattern<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#how-to-identify-the-descending-triangle-pattern\">How to Identify the Descending Triangle Pattern<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#trading-the-descending-triangle-pattern\">Trading the Descending Triangle Pattern<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#entry-point\">Entry Point<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#stop-loss\">Stop-Loss<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#target-price\">Target Price<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#numerical-example-of-a-descending-triangle-pattern\">Numerical Example of a Descending Triangle Pattern<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#significance-of-volume-in-the-descending-triangle-pattern\">Significance of Volume in the Descending Triangle Pattern<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#example-of-a-descending-triangle-pattern-with-volume-spike\">Example of a Descending Triangle Pattern with Volume Spike<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#when-does-the-descending-triangle-pattern-occur\">When Does the Descending Triangle Pattern Occur?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#trading-strategies-for-descending-triangle-patterns\">Trading Strategies for Descending Triangle Patterns<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#conclusion\">Conclusion<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#frequently-asked-questions\">Frequently Asked Questions<\/a><\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <strong>Descending Triangle Pattern<\/strong> is a popular <strong>bearish continuation pattern<\/strong> in technical analysis, which signals that the price of a stock or asset is likely to break down lower after a period of consolidation. This pattern forms when the price makes lower highs, but consistently finds support at a horizontal level, creating a triangular shape with a downward slope. The pattern suggests that selling pressure is increasing, and once the price breaks below the support level, a downward move is expected.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">In this article, we will explore the <strong>Descending Triangle Pattern<\/strong>, how to identify it, how it works, and how to trade it with numerical examples. We will also discuss target prices, <a href=\"https:\/\/navia.co.in\/blog\/options-stop-loss-strategy-your-investments\/\" data-type=\"post\" data-id=\"6349\">stop-loss strategies<\/a>, and the role of volume in confirming the pattern.&nbsp;<\/p>\n\n\n\n<blockquote style=\"border-left:4px solid #e8622f;background:#fdf1ec;padding:18px 22px;margin:1.5em 0;line-height:1.8;\"><strong>\ud83d\udca1 Quick Answer<\/strong><br>A descending triangle is a bearish continuation pattern formed by a downward-sloping resistance line of lower highs and a flat horizontal support line. Price contracts inside the triangle until it breaks below support. A volume spike on that break confirms the move lower.<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-1\" id=\"what-is-the-descending-triangle-pattern\" style=\"color:#023368\"><strong>What is the Descending Triangle Pattern?<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <strong>Descending Triangle Pattern<\/strong> is formed by two key trendlines: a <strong>downward-sloping resistance line<\/strong> (connecting lower highs) and a <strong>horizontal support line<\/strong> (connecting equal lows). The price contracts within this triangular shape as it makes a series of lower highs while finding support at a certain price level. The pattern is complete when the price breaks below the horizontal support line, signaling a bearish continuation.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">While the pattern is primarily a <strong>bearish continuation pattern<\/strong>, it can occasionally act as a <strong>reversal pattern<\/strong> if it forms after an uptrend.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-2\" id=\"key-characteristics-of-the-descending-triangle-pattern\" style=\"color:#023368\"><strong>Key Characteristics of the Descending Triangle Pattern<\/strong>&nbsp;<\/h2>\n\n\n\n<ol style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Lower Highs<\/strong>:&nbsp;<br>The price forms <strong>lower highs<\/strong> as it moves downwards, indicating that the buying pressure is weakening, and sellers are gradually gaining control.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Horizontal Support Line<\/strong>:&nbsp;<br>The price finds consistent support at a certain price level, forming a horizontal line. This support line is tested multiple times as buyers step in to prevent further declines.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Breakout<\/strong>:&nbsp;<br>The pattern is confirmed when the price breaks below the <strong>horizontal support line<\/strong>. This breakdown suggests that the sellers have overpowered the buyers, and the price is likely to move lower.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Volume<\/strong>:&nbsp;<br>Volume often decreases as the pattern develops, indicating a consolidation phase, but it typically spikes when the price breaks below the support level, confirming the downward move.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-3\" id=\"how-to-identify-the-descending-triangle-pattern\" style=\"color:#023368\"><strong>How to Identify the Descending Triangle Pattern<\/strong>&nbsp;<\/h2>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Spot the Downward-Sloping Resistance Line<\/strong>:&nbsp;<br>Identify a <strong>series of lower highs<\/strong>, indicating that sellers are becoming more aggressive and the price is failing to make higher peaks.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Identify the Horizontal Support Line<\/strong>:&nbsp;<br>Look for a <strong>support level<\/strong> where the price finds consistent support and fails to break lower. The support line should be flat or nearly flat.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Wait for the Breakout<\/strong>:&nbsp;<br>The pattern is confirmed when the price <strong>breaks below the support line<\/strong> with strong volume, signaling a continuation of the downtrend.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Measure the Target<\/strong>:&nbsp;<br>Measure the <strong>height of the pattern<\/strong> (the distance between the first high and the support level) and project that distance downward from the breakout point to set the target price.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-4\" id=\"trading-the-descending-triangle-pattern\" style=\"color:#023368\"><strong>Trading the Descending Triangle Pattern<\/strong>&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-5\" id=\"entry-point\" style=\"color:#ec4d37\"><strong>Entry Point<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Enter a <strong>short position<\/strong> when the price breaks below the horizontal support line with strong volume, confirming the breakout.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-6\" id=\"stop-loss\" style=\"color:#ec4d37\"><strong>Stop-Loss<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Place your <strong>stop-loss<\/strong> just above the <strong>most recent lower high<\/strong> to protect against a potential false breakout.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-7\" id=\"target-price\" style=\"color:#ec4d37\"><strong>Target Price<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The target price is calculated by measuring the <strong>height of the pattern<\/strong> (the distance between the highest point and the support line) and projecting that distance downward from the breakout point.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-8\" id=\"numerical-example-of-a-descending-triangle-pattern\" style=\"color:#ec4d37\"><strong>Numerical Example of a Descending Triangle Pattern<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Let\u2019s break down a simple example of a <strong>Descending Triangle Pattern<\/strong> using numbers.<\/p>\n\n\n\n<figure class=\"wp-block-table aligncenter\"><table><thead><tr><th><strong>Action<\/strong>&nbsp;<\/th><th><strong>Price (\u20b9)<\/strong>&nbsp;<\/th><th><strong>Description<\/strong>&nbsp;<\/th><\/tr><\/thead><tbody><tr><td>First High&nbsp;<\/td><td>120&nbsp;<\/td><td>Price rises to \u20b9120, forming the first high&nbsp;<\/td><\/tr><tr><td>Support Level&nbsp;<\/td><td>100&nbsp;<\/td><td>Price declines to \u20b9100, forming the support line&nbsp;<\/td><\/tr><tr><td>Lower High&nbsp;<\/td><td>110&nbsp;<\/td><td>Price rises again to \u20b9110, forming a lower high&nbsp;<\/td><\/tr><tr><td>Second Test of Support&nbsp;<\/td><td>100&nbsp;<\/td><td>Price declines again to \u20b9100, confirming the support level&nbsp;<\/td><\/tr><tr><td>Breakout&nbsp;<\/td><td>100-&nbsp;<\/td><td>Price breaks below \u20b9100 with strong volume&nbsp;<\/td><\/tr><tr><td>Target Price&nbsp;<\/td><td>80&nbsp;<\/td><td>Target = \u20b9100 &#8211; (\u20b9120 &#8211; \u20b9100) = \u20b980&nbsp;<\/td><\/tr><tr><td>Stop-Loss&nbsp;<\/td><td>115&nbsp;<\/td><td>Stop-loss placed just above the lower high at \u20b9115&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">In this example, the price forms lower highs at \u20b9120 and \u20b9110, while consistently finding support at \u20b9100. After the second test of the support level, the price breaks below \u20b9100 with strong volume, confirming the bearish continuation. The target price is set at \u20b980 based on the height of the pattern (\u20b9120 &#8211; \u20b9100 = \u20b920), and the stop-loss is placed just above the lower high at \u20b9115 to protect against a false breakout.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background has-link-color wp-element-button\" href=\"https:\/\/navia.co.in\/app.html\" style=\"background-color:#ec4d37\"><strong>Get Navia APP<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-9\" id=\"significance-of-volume-in-the-descending-triangle-pattern\" style=\"color:#023368\"><strong>Significance of Volume in the Descending Triangle Pattern<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>Volume<\/strong> plays a crucial role in confirming the validity of the <strong>Descending Triangle Pattern<\/strong>:&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>Volume Decreases During Formation<\/strong>:&nbsp;<br><a href=\"https:\/\/navia.co.in\/blog\/significance-of-volume-in-reversal-patterns\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=chart_patterns\">Volume tends to decrease as the pattern forms<\/a>, indicating a period of consolidation. This reduction in volume suggests that <a href=\"https:\/\/navia.co.in\/open-options-trading-account\">the market<\/a> is pausing before making a decisive move.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>Volume Spike at Breakout<\/strong>:&nbsp;<br>A <strong>volume spike<\/strong> during the breakout below the support level confirms that selling pressure is intensifying and that the bearish continuation is likely. Without this volume confirmation, the breakout may be a false signal.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-10\" id=\"example-of-a-descending-triangle-pattern-with-volume-spike\" style=\"color:#ec4d37\"><strong>Example of a Descending Triangle Pattern with Volume Spike<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Here\u2019s another example of a <strong>Descending Triangle Pattern<\/strong> with volume:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th class=\"has-text-align-center\" data-align=\"center\"><strong>Action<\/strong><\/th><th><strong>Price (\u20b9)<\/strong>&nbsp;<\/th><th><strong>Volume<\/strong><\/th><th><strong>Description<\/strong><\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">First High&nbsp;<\/td><td>200&nbsp;<\/td><td>1,00,000&nbsp;<\/td><td>Price rises to \u20b9200, forming the first high&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Support Level&nbsp;<\/td><td>180&nbsp;<\/td><td>80,000&nbsp;<\/td><td>Price declines to \u20b9180, forming the support line&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Lower High&nbsp;<\/td><td>190&nbsp;<\/td><td>75,000&nbsp;<\/td><td>Price rises again to \u20b9190, forming a lower high&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Second Test of Support&nbsp;<\/td><td>180&nbsp;<\/td><td>70,000&nbsp;<\/td><td>Price declines again to \u20b9180, confirming the support level&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Breakout&nbsp;<\/td><td>180-&nbsp;<\/td><td>1,40,000&nbsp;<\/td><td>Price breaks below \u20b9180 with a volume spike&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Target Price&nbsp;<\/td><td>160&nbsp;<\/td><td>&nbsp;<\/td><td>Target = \u20b9180 &#8211; (\u20b9200 &#8211; \u20b9180) = \u20b9160&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Stop-Loss&nbsp;<\/td><td>195&nbsp;<\/td><td>&nbsp;<\/td><td>Stop-loss placed just above the lower high at \u20b9195&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">In this case, the price forms lower highs at \u20b9200 and \u20b9190, while consistently finding support at \u20b9180. After testing the support level twice, the price breaks below \u20b9180 with a volume spike from <strong>70,000 shares<\/strong> to <strong>1,40,000 shares<\/strong>, confirming the bearish continuation. The target price is set at \u20b9160, and the stop-loss is placed above the lower high at \u20b9195 to protect against a false breakout.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-11\" id=\"when-does-the-descending-triangle-pattern-occur\" style=\"color:#023368\"><strong>When Does the Descending Triangle Pattern Occur?<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <strong>Descending Triangle Pattern<\/strong> typically forms during a <strong>downtrend<\/strong>, acting as a <strong>continuation pattern<\/strong>. It indicates that the price is consolidating before continuing the downtrend. However, in some cases, the pattern can act as a <strong>reversal pattern<\/strong> if it forms after an uptrend.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The pattern is most effective when it forms over a longer time frame (daily, weekly, or monthly charts) and is confirmed by a volume increase during the breakout below the support level.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-12\" id=\"trading-strategies-for-descending-triangle-patterns\" style=\"color:#ec4d37\"><strong>Trading Strategies for Descending Triangle Patterns<\/strong>&nbsp;<\/h2>\n\n\n\n<ol style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>In Bearish Markets<\/strong>:&nbsp;<br>The <strong>Descending Triangle Pattern<\/strong> is a bearish continuation signal, and traders can look for <strong>short-selling opportunities<\/strong> when the price breaks below the support level.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Volume-Based Confirmation<\/strong>:&nbsp;<br>A <strong>volume spike<\/strong> during the breakout confirms the strength of the bearish move. If the breakout occurs with low volume, it could indicate a <strong>false breakout<\/strong>.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Target and Stop-Loss Setting<\/strong>:&nbsp;<br>Use the height of the pattern to set a realistic <strong>target price<\/strong>, and place your <strong>stop-loss<\/strong> just above the most recent lower high to protect against false signals.<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/open.navia.co.in\/?utm_source=Organic&amp;utm_medium=blog&amp;utm_campaign=blog&amp;utm_content=descending_triangle_pattern_CTA\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"149\" style=\"max-width:100%;height:auto\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-10-1024x149.png\" alt=\"Open a free Navia demat account\" class=\"wp-image-8448\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-10-1024x149.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-10-300x44.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-10-150x22.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-10-768x112.png 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/image-10.png 1028w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-13\" id=\"conclusion\" style=\"color:#023368\"><strong>Conclusion<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <strong>Descending Triangle Pattern<\/strong> is a reliable <strong>bearish continuation pattern<\/strong> that signals the potential continuation of a downtrend after a period of consolidation. By identifying the <strong>downward-sloping resistance line<\/strong>, <strong>horizontal support line<\/strong>, and waiting for a <strong>volume-confirmed breakout<\/strong>, traders can capitalize on the pattern\u2019s potential for profits.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">With well-defined <strong>entry points<\/strong>, <strong>stop-loss levels<\/strong>, and <strong>target prices<\/strong>, the Descending Triangle Pattern offers a structured and relatively low-risk strategy for traders looking to profit from bearish market continuations. By paying close attention to <strong>volume spikes<\/strong> during the breakout, traders can confirm the validity of the pattern and avoid false signals.&nbsp;<\/p>\n\n\n\n<h3 style=\"color:#ec4d37;\">Key Takeaways<\/h3>\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\">The descending triangle is built from two trendlines: a <strong>downward-sloping resistance line<\/strong> connecting lower highs and a <strong>horizontal support line<\/strong> connecting equal lows.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">A series of lower highs shows buying pressure weakening while sellers gradually take control; the flat support is tested repeatedly until it gives way.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">The pattern is confirmed only when price breaks below the horizontal support line. It is primarily a bearish continuation pattern but can act as a reversal if it forms after an uptrend.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Volume falls during the consolidation and spikes at the breakdown; without that volume confirmation the breakout may be a false signal.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Measure the height between the first high and the support level and project it downward from the breakout to set the target. Its bullish counterpart is the <a href=\"https:\/\/navia.co.in\/blog\/ascending-triangle-pattern-in-technical-analysis\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=chart_patterns\">ascending triangle<\/a>, and the <a href=\"https:\/\/navia.co.in\/blog\/the-falling-wedge-pattern-in-technical-analysis\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=chart_patterns\">falling wedge<\/a> and <a href=\"https:\/\/navia.co.in\/blog\/understanding-rising-wedge-pattern-technical\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=chart_patterns\">rising wedge<\/a> are the sloping-channel equivalents. All of them are read on the charts covered in our <a href=\"https:\/\/navia.co.in\/blog\/candlestick-patterns-simple-guide-for-traders\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=chart_patterns\">guide to candlestick patterns<\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-14\" id=\"frequently-asked-questions\" style=\"color:#023368\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">What is a descending triangle pattern?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">The descending triangle pattern is formed by two key trendlines: a downward-sloping resistance line connecting lower highs and a horizontal support line connecting equal lows. The price contracts within this triangular shape as it makes a series of lower highs while finding support at a certain price level. The pattern is complete when the price breaks below the horizontal support line, signaling a bearish continuation.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">Is a descending triangle always bearish?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">While the pattern is primarily a bearish continuation pattern, it can occasionally act as a reversal pattern if it forms after an uptrend. It typically forms during a downtrend and indicates that the price is consolidating before continuing the downtrend.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">How do you trade a descending triangle breakout?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">Enter a short position when the price breaks below the horizontal support line with strong volume, confirming the breakout. Place the stop-loss just above the most recent lower high to protect against a potential false breakout.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">How is the target price for a descending triangle calculated?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">Measure the height of the pattern, which is the distance between the first high and the support level, and project that distance downward from the breakout point. In the worked example the first high is \u20b9120 and support is \u20b9100, a height of \u20b920, so the target price is \u20b980.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px;\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px;\">Why does volume matter in a descending triangle?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0;\">Volume tends to decrease as the pattern forms, indicating a period of consolidation and suggesting that the market is pausing before making a decisive move. A volume spike during the breakout below the support level confirms that selling pressure is intensifying and that the bearish continuation is likely. Without this volume confirmation, the breakout may be a false signal.<\/p>\n\n<\/details>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>Do You Find This Interesting?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\">We\u2019d Love to Hear from you-<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc\"><img decoding=\"async\" width=\"300\" height=\"64\" style=\"max-width:100%;height:auto\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png\" alt=\"feedback yes or no button\" class=\"wp-image-8901\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:13px;line-height:1.6;color:#777\"><strong>DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.<\/strong> Full disclaimer: <a href=\"https:\/\/bit.ly\/naviadisclaimer\" target=\"_blank\" rel=\"noopener\">https:\/\/bit.ly\/naviadisclaimer<\/a><\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>The Descending Triangle Pattern is a popular bearish continuation pattern in technical analysis, which signals that the price of a stock or asset is likely to break down lower after a period of consolidation. This pattern forms when the price makes lower highs, but consistently finds support at a horizontal level, creating a triangular shape [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9134,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[16],"tags":[321,478,504,45,583],"class_list":["post-9111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trading","tag-chart-pattern","tag-descending-triangle-pattern","tag-technical-analysis","tag-trading","tag-trading-volume"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Descending-Triangle-attern.png","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Descending-Triangle-attern.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/9111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=9111"}],"version-history":[{"count":25,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/9111\/revisions"}],"predecessor-version":[{"id":19048,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/9111\/revisions\/19048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/9134"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=9111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=9111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=9111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}