Mastering The Descending Trading Pattern
                     Mastering the 
Descending Triangle 
Pattern
For more visit: 
https://navia.co.in/blog/descending-triangle-pattern-in-technic
al-analysis/
Introduction to the 
Descending Triangle 
Pattern
Defi nition:
A bearish continuation pattern signaling a potential 
downward price movement after consolidation.
Formation:
Characterized by a downward-sloping resistance l ine 
connecting lower highs and a horizontal support l ine 
connecting consistent lows, forming a triangular shape.
For more visit: 
https://navia.co.in/blog/descending-triangle-pattern-in-technic
al-analysis/
Key Characteristics
1. Lower Highs:
Indicate weakening buying pressure and 
increasing sell ing dominance.
2. Horizontal Support Line:
Represents a price level where buyers 
consistently prevent further decline.
3. Breakout Confi rmation:
Occurs when the price decisively breaks below 
the horizontal support l ine, often accompanied 
by increased volume.
For more visit: 
https://navia.co.in/blog/descending-triangle-pattern-in-technic
al-analysis/
Identifying the Pattern
Trendlines:
Draw a descending l ine connecting the series of lower 
highs.
Draw a horizontal l ine connecting the consistent lows.
Volume Analysis:
Observe decreasing volume during pattern formation, with 
a spike upon breakout.
Timeframe:
Typically forms over weeks to months, depending on the 
asset and market condit ions.
For more visit: 
https://navia.co.in/blog/descending-triangle-pattern-in-technic
al-analysis/
Trading Strategies
Entry Point:
Enter a short posit ion upon a confi rmed breakout 
below the support l ine with increased volume.
Stop-Loss Placement:
Set stop-loss orders just above the last lower 
high to manage risk.
Profi t Target:
Estimate potential decline by measuring the 
vertical distance between the initial high and 
the support l ine, subtracting this from the 
breakout point.
For more visit: 
https://navia.co.in/blog/descending-triangle-pattern-in-technic
al-analysis/
Disclaimer
Investment in securities market are subject to market risks, read all  the 
related documents carefully before investing. The securities quoted are 
for i l lustrative purposes and are not intended as recommendations. 
Brokerage wil l  not exceed the SEBI prescribed l imit. Navia Markets Ltd 
,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 
07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 
NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for 
DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-
Registered offi ce: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam 
High Road, Chennai - 600 034 Email ID: [email protected] - Contact No: +91 
70100 75500 https://bit. ly/naviadisclaimer
For more visit: 
https://navia.co.in/blog/descending-triangle-pattern-in-technic
al-analysis/