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Falling Triangle

Volume Price Analysis glossary · Support, Resistance & Breakout Mechanics

Definition

A bearish congestion pattern with a flat floor and declining highs, signalling weakening buying pressure.

Falling Triangle in plain English

Picture price bouncing inside a shape on the chart: the bottom (the "floor") stays flat at the same level, but each peak is lower than the last, so the top slants down toward the floor. That squeezing pattern means buyers keep failing to push price as high as before — their strength is fading with each try, like someone bouncing a ball that rises less and less. Since the sellers are steadily winning the squeeze, it usually warns that price is more likely to eventually drop through that floor.

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Which specific technical pattern is created when the market forms declining rally highs while testing a flat floor of…

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