The descending triangle is not common, but it is quite simple in technical analysis. To form this pattern, you need a clear support area (with at least 2 touchpoints) and a downward sloping resistance line (forming the upper side of the triangle).

"Key Elements of the Descending Triangle"

- Price fluctuations should create a clear support area. Of course, it may not be perfectly horizontal, and the levels of the lows may vary slightly, but it should be a support area with at least 2 touchpoints.

- On the downside, the price should draw a descending resistance line. The price should touch this resistance line at least 2 times.

- During the formation of the pattern, trading volume typically decreases. However, at the end of the pattern, trading volume will increase significantly.

- When the price crosses the support area, the pattern ends. Usually, this final crossing is accompanied by high trading volume.

- The support level becomes a resistance level; after breaking the support level, the price may retest this breakout level.