Descending Triangle

The tell: Flat floor with lower highs pressing down on it until it gives way.

What it looks like

A flat floor tested repeatedly while the highs step lower into it — sellers pressing a weakening bid.

Why it works

A large buyer defends one price while sellers get more aggressive above. When the bid is eaten, the floor drops out.

Entry

Break of the flat support with volume expanding (short).

Stop

Above the most recent lower high.

Target

Triangle height subtracted from the breakdown level.

How it fails

A sweep below the floor that reclaims immediately — that's a spring, and it can rip the other way.

Reading it in a textbook is not the same as spotting it live. Drill the descending triangle on charts generated fresh every time, or try today’s five.