Descending Triangle

intermediate

7 min read

Updated 2026-07-13

Reviewed by SST Editorial

A descending triangle is a bearish consolidation pattern characterized by a flat lower support line and a falling upper resistance line. This structure shows that sellers are becoming increasingly aggressive, willing to sell at lower prices, while buyers only step in at a fixed support floor. The pattern confirms when price breaks and closes below the horizontal support line.

Key Takeaways

01.A flat horizontal support floor and a falling descending resistance ceiling.
02.Price volatility compresses as the pattern narrows toward its apex.
03.Downward breakdown below the support floor on expanding volume confirms the pattern.
04.The target is measured by taking the widest height of the triangle and projecting it downward from the breakdown point.

Why it matters

It indicates that supply is overwhelming demand: sellers are pressing the price lower on each rebound, showing that buyers are losing momentum at the support floor. Once that floor cracks, it often leads to a rapid sell-off.

When it matters

It is most reliable as a continuation pattern during established primary downtrends.

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Visual Reference: diagram

A triangle structure with a flat horizontal lower line and a falling, downward-sloping upper line.

Interactive Tool: terminal-embed

Draw a horizontal support line across the lows and a descending line across the highs to track the breakdown.

Common Mistakes

Assuming support will hold

Traders often buy the horizontal support line, expecting a double/triple bottom. However, in a descending triangle, this support is under increasing pressure and is statistically likely to break.

Trading late breakdowns

If price breaks down very close to the apex (beyond 75% of the triangle's length), the breakout often lacks momentum and can result in choppy, sideways action.

📖 Real-World Example: Breakdown of a declining retail stock

During a retail sector downturn, a major department store chain formed a descending triangle. Support held at $20 three times, but highs declined from $26 to $24 to $22. The break below $20 occurred on heavy institutional selling, quickly pushing the stock down to its target of $14.

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