Forex Term: Descending Triangle
A 'descending triangle' is a bearish continuation pattern and consolidation pattern that indicates the price will continue in the direction of the previous trend. It often times accompanies a flag pole formation. Shown in blue lines on chart below, in a descending triangle the top resistance is a downward sloping trend line, indicating that selling pressure is increasing on each rally, while bottom support is horizontal. Descending triangles are bearish signals on breaks of bottom support.