Descending Triangle
A formation with a flat lower boundary and a falling upper boundary, so the range narrows downward toward a point.
How it is identified
Test: two or more lows at approximately the same level, with successively lower highs converging on them
Unit
qualitative
In depth
The mirror of the ascending triangle, describing sellers accepting progressively less while buyers hold at a fixed price. As with its counterpart, the shape does not determine the resolution, and treating a descending triangle as inherently bearish is a common overreach that the evidence does not support. The flat lower boundary usually accumulates stop-loss orders, so a breach can move quickly through a thin book — a mechanical effect rather than an informational one. The entry describes the geometry and offers no directional view.
Worked example
Lows at ₹480, ₹481 and ₹479 with highs at ₹534, ₹517 and ₹498. The range has compressed from ₹54 to ₹19, and the stops clustered under ₹479 are what would make a breach fast.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Descending Triangle” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.