The ascending triangle sometimes also appears as a bottoming pattern. Again, the pattern is considered bullish. When demand remains weaker than supply, a bearish ascending pattern may form and is confirmed with a breakout on the downside on good volume. The descending triangle is a flipped over ascending triangle with a flat bottom line and a declining upper line. A close under the lower trendline, usually on increased volume, resolves the pattern to the downside as bearish.
Volume is less important on the downside than on the upside.
If a rally occurs it usually meets resistance at the lower trendline. The descending triangle can also be found at the top of a market. Further Information Also see Breakout Signals .