Descending triangle

A descending triangle is drawn by identifying an established support level and drawing a horizontal line through it and a decending line which passes through lower highs until the two lines intersect.
A descending triangle is usually an indicator or an impending price breakout to a much lower level. The lower highs that seems to compress through the pannel combined with a well defined support level signifies that the long positions are getting weaker. The lower highs shows the accumulation of short positions what will eventually break the support line resulting in a price breakout lower.