How to Trade Descending Triangles (87% Success Rate)

Added: 2026-05-27

[00:00:00]Buy or sell? You have 5 seconds. Go.

[00:00:02]That's a descending triangle, and the right trade depends entirely on one thing: the broader trend. According to Thomas Bulkowski, who studied over 2,800 trades, if this pattern forms during a broader uptrend, it continues up 87% of the time with an average gain of 38%. If it forms during a broader downtrend, it breaks down 79% of the time with an average decline of 16%. The same pattern, opposite trades. The overall trend is what really matters. In a descending triangle, price keeps bouncing off the floor, but every bounce is weaker with lower and lower highs.

[00:00:27]Why do you think this happens, and what is the confirmation signal you'd look for before entering a trade? If you were competing in our live cash prize tournaments, you'd have to make quick decisions like this under pressure.

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[00:00:36]So, would you