Definition
Descending Triangle shows sellers becoming more aggressive (lower highs) while support holds flat. This typically resolves with a downside breakdown. It's the bearish counterpart to the ascending triangle.
Formula
Price Target = Support - (Initial Resistance - Support)
Example
Support at $40 holds while resistance falls from $48 to $42. Breakdown below $40 targets $35. The pattern shows increasing selling pressure.
FAQ
What is Descending Triangle?
A bearish pattern with flat support and falling resistance.
How do you calculate Descending Triangle?
A common formula for Descending Triangle is: Price Target = Support - (Initial Resistance - Support)
Why is Descending Triangle important?
Descending Triangle helps investors evaluate chart patterns and make more informed decisions.