Descending Triangle
A descending triangle is a bearish chart pattern where price makes lower highs while bouncing off the same support level. Picture a right triangle with a flat bottom and descending top.
Understanding the Concept
This pattern shows sellers gaining control. Each rally gets sold harder, creating lower highs, while buyers defend support. Eventually, support breaks and price drops. It's the bearish mirror of an ascending triangle. Smart traders wait for the breakdown below support with volume confirmation before shorting. The target is typically the triangle's height subtracted from the breakdown point. False breakdowns happen, so stop losses above the pattern protect you.
Real-World Example
Ethereum keeps bouncing off $2,000 support but each bounce is weaker ($2,800, $2,600, $2,400). When ETH finally breaks below $2,000, traders target $1,200—the triangle height ($800) subtracted from support.
How Strykr Helps
Strykr's AI monitors Descending Triangle signals across 5,000+ assets in real-time. Get instant alerts when significant patterns emerge, with context about market conditions and confluence factors.
Try Strykr Free