Trends/Continuation patterns

Descending triangle

Price keeps stopping at the same floor, while each bounce tops out lower than the one before. The two lines squeeze together.

Continuation patternsBest on 6M, 1Y, 3YAlso called falling triangle

Illustration of the descending triangle shape. It is a sketch, not real price data.

What it shows

A descending triangle has a flat floor through lows at about the same price, and a falling line over highs that keep getting lower. The range narrows as the lines draw closer.

It shows sellers accepting lower prices on each bounce while buyers hold one level. It does not say which way price will leave the shape.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Find swing highs and swing lows.
Flat floor: at least 2 swing lows within 1.5% of each other. The support line sits at their average.
Falling ceiling: at least 2 swing highs, each lower than the one before, with a line fitted through them that slopes down.
Converging: the gap at the last bar is no more than 70% of the gap at the first touch.
Intact: no close beyond either line by more than a small margin.
Long enough: at least 20 bars.

Starting values: Floor tolerance 1.5%; Convergence 70%; Minimum length 20 bars. These are proposed and will be tuned on real price data before launch.

How to read it

The floor is the flat teal line.
The ceiling is the falling red line.
The apex is where the lines would meet.

Status labels you may see

Label	What it means
Forming	Price is between the lines.
Testing the floor	Within 2% of the flat floor.
Closed below the floor	The last close is under the floor.
Closed above the ceiling	The last close is above the falling line.

What cancels it

A close above the falling ceiling, or a close below the floor, which ends the shape.

What traders check next

Volume inside the shape and at the move out.
Whether the move out was a close or only a wick.
Whether a longer period shows the same shape.

Limits

It describes the past, not the future.
Margins change which points count.
Breaks can reverse.

Try it in forecastviz

Open any ticker and choose Continuation patterns → Descending triangle in the left menu.
Switch between 6M, 1Y, 3Y to see how the picture changes.
Compare with Ascending triangle and Symmetrical triangle on the same chart.

Open on a ticker

Questions

Is it the mirror of an ascending triangle?

Yes.

Does it always break down?

No. Both directions happen. We do not publish a rate.