Continuation Pattern
A flat floor of support with a declining ceiling of resistance above it — sellers pressing in at progressively lower prices while buyers defend the same level, until the floor breaks.
Price touches the same horizontal support level three or more times while each rally high is lower than the last. The two boundaries converge toward the flat floor — wide on the left, narrow on the right. This pattern forms as a consolidation phase after a preceding downtrend, not during the downtrend itself — LuminaAnalysis explicitly excludes the steep preceding decline from the drawn formation.
The lower touches must sit within ±0.3% of each other (regression slope + first-to-last drift). If the floor is actually drifting downward beyond that tolerance, the setup gets reclassified as a Descending Channel — a flat floor throughout the whole formation, checked against the entire visible candle window, is the defining feature.
At least 3 lower highs are required, each showing a genuine rejection — price must reverse downward by at least 0.3% after touching resistance before the next leg up.
The formation must start where the preceding downtrend ends and consolidation begins — not at the extreme low of the prior decline. Including the steep drop itself in the drawing is treated as a detection error, not a valid Descending Triangle.
Both trendlines are fit with linear regression across all touches; if any single touch deviates more than 15% from the fitted line, the pattern fails validation entirely.
Confirm: Price closes below the flat support level — breakdown confirmed. Target is measured as the triangle's starting height (the earliest resistance touch minus support) projected downward from the breakdown point.
Invalidation: Price closes back above the declining resistance trendline before a breakdown occurs.
Technical analysis scenarios. Not investment advice.
A Descending Triangle inside an established downtrend is a continuation signal; the same shape after a long uptrend carries less conviction as a pure bearish setup.
Each touch of the same support level uses up buying interest at that price — a third or fourth test is statistically more likely to break than the first.
As the range narrows toward the apex, a decisive move tends to happen sooner rather than later.
A breakdown on rising volume is a stronger confirmation than a quiet drift below support.