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Descending Triangle
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Disclaimers and Disclosures

Descending Triangles are the mirror opposite of Ascending Triangles and are a test of support rather than of resistance. In a Descending Triangle there is a string of lower highs which forms the upper line. The lower line is a support level which the price action has not been able to break.

Snap74DecTriJPEG.jpg

A Descending Triangle is a bearish pattern. The selling is creating lower lows and the buyers are not holding up the price of the stock or market. Often, the price will eventually break the support line and will continue to fall.  
 
A bullish development and possible change in the trend would occur should the support line hold and prices reverse and move upward. This would be a successful test of support.  
 
Also remember than should the support line fail and prices fall beneath it, the line that was once support would then become new resistance if the stock or market reversed and moved back up. What was once support becomes resistance. Just as what was once resistance becomes support in the other direction.