Descending Triangle Pattern: Bearish Breakdown

Pattern structure

Flat horizontal support at the bottom, falling resistance at the top forming a descending triangle. Each high is lower than the last — sellers are getting more aggressive — while support holds. Eventually support gives way, usually to the downside, with a measured-move target.

Execution

Short on breakdown below horizontal support with volume expansion. Stop above the most recent lower-high. Target: triangle height projected down from the breakdown. Descending triangles in downtrends are continuation patterns and tend to have higher win rates than ascending triangles in uptrends due to short-covering dynamics.

Bear traps

If support has been tested 3+ times and each test shows diminishing volume on the bounces, that's classic distribution and the breakdown is high-probability. If bounces come on rising volume, demand is actually returning — the triangle might resolve upward as a failed breakdown.