A descending triangle is a bearish continuation pattern that forms during a downtrend. It consists of two main components:

- Lower highs. There is a downward-sloping trendline that connects a series of lower highs (price peaks). Each subsequent high is lower than the previous one, indicating a consistent pattern of decreasing upward momentum.
- Horizontal support. A horizontal line represents a strong level of support, where the price has difficulty breaking below. This support level acts as a floor for the descending triangle.

As the descending triangle pattern develops, the range between the downward-sloping trendline and the horizontal support narrows. This narrowing range signifies a potential compression of price movements, often resembling a triangle shape.

The descending triangle is confirmed when the price breaks below the horizontal support level. This breakout is considered a bearish signal and suggests that the prevailing downtrend is likely to continue. The distance between the highest point of the triangle and the horizontal support can be used to estimate the potential price target for the downside move.

To identify a descending triangle pattern:
-Look for a series of lower highs connected by a downward-sloping trendline.
-Identify a horizontal support level where the price has previously found support.
-Watch for the narrowing of the price range between the trendline and support, forming a triangle-like pattern.
-Confirm the pattern when the price breaks below the horizontal support level with increased volume.

Example. Imagine you're analyzing a cryptocurrency's price chart and notice a series of lower highs connected by a downward-sloping trendline. There's also a horizontal support level that the price has repeatedly bounced off in the past. As the pattern develops, the price range between the trendline and support narrows, creating the descending triangle. If the price breaks below the support level with strong volume, the descending triangle pattern is confirmed.
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