The opposite of an ascending triangle is a descending triangle.

Usually, the bottom of the descending triangle acts as a flat support level, and its top side is slanted downward as it reaches lower highs. This pattern can indicate weakening support and the approach of a breakout downwards. These lower highs will mean that bears have an influence on the market, and there are opportunities for selling.

Below, you’ll learn about two ways to trade using descending triangles.

Trading Using Descending Triangle: Method One

The first method involves entering the market after the price breaks the support level downwards and begins to decrease. You can wait for a candle to close below the support level before seeking a short position opening.

The stop-loss is placed above the pattern side that is inclined downwards. After that, the profit level can be determined by taking the size of the backside of the descending triangle and postponing this distance from the breakout downwards.

Trading Using Descending Triangle: Method Two

The second method involves waiting for the price to break through the lower support level downwards, as in the first method. Then, you need to place a sell order after retesting the support level price (the broken support turns into resistance).

The stop-loss is placed above the new resistance area. However, the profit level will remain as it was in the first method.