Descending Triangle

Descending Triangle is a technical analysis pattern characterized by a downward sloping trendline above and a horizontal support line below. It forms when an asset's price experiences lower highs while maintaining consistent lows. Traders view it as a bearish signal, suggesting a potential breakdown below the support level. The pattern is confirmed if the price breaks below the support line with increased volume. Descending triangles are used to anticipate downward price movements, helping traders make informed decisions on shorting or exiting positions.