Descending Triangle
Definition
A bearish continuation chart pattern characterized by a flat lower support line and a declining upper resistance line. Typically resolves with a breakdown below the flat support.
Example
A stock testing $40 support multiple times while making lower highs forms a descending triangle — a breakdown below $40 confirms bearish continuation.
Related Terms
Frequently Asked Question
What is a Descending Triangle?
A descending triangle has flat support and declining resistance. Sellers are increasingly aggressive (lower highs) while buyers defend support. Breakdown below support is the bearish signal.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.