A descending triangle
is a bearish
chart pattern used in technical analysis
that is created by drawing one trend line
that connects a series of lower highs and a second horizontal trend line
that connects a series of lows. Oftentimes, traders watch for a move below the lower support trend line
because it suggests that the downward momentum is building and a breakdown is imminent. Once the breakdown occurs, traders enter into short positions and aggressively help push the price of the asset even lower.