A descending triangle is a kind of a straightforward chart pattern which is utilized to Cary out simple technical analysis. The descending triangle is normally created through 2 main trend lines. One trend line is basically created from low prices and second one from high prices and one for lows. The upper trend line of the triangle is known as descending trend line and the lower trend line is called horizontal trend line. The shape made through this triangle is called right triangle whose hypotenuse makes downwards movement over time.
The descending triangle can be identified through noting two lows and two highs within a price chart each taking place during a fixed period of time. In addition, there must be a considerable amount of distance among every low and high. It should be noted that descending triangles usually are created and developed during one to 3 month period Additionally, it is a known fact that descending triangle is always created during a bearish pattern and upper trend line continues to decline during that time period until the creation of lower triangle trend line. The resistance becomes evident after the breaking of level of support. It is also used to confirm the overall declining trend.