Descending Triangle

A descending triangle is a chart formation where the horizontal support that connects the price’s lows is met by an downward sloping line that connects the highs. Here, the sellers are considered the more aggressive ones against the buyers as they continually push the price lower. Hence, a descending triangle is generally considered as a bearish continuation pattern. However, once in a awhile an upside rather than a downside breakout occurs. Either way, the price tends to reach a target which is about the length of the base of the triangle projected from the point of breakout.