A descending triangle is a bearish chart pattern used in technical analysis, formed by two trend lines that one connects to high prices and another horizontal line connects to low prices. The resulting shape is a right triangle with its hypotenuse moving downward.
A descending triangle shows a strong sell signal through its pattern. When prices move below the lower support trendline, it becomes a level of resistance, indicating the downward momentum is being established and a breakdown is imminent. Once support is broken, traders enter into short positions and push the price of the asset even lower.