You know, I've been watching how traders catch big moves down for a long time, and I noticed an interesting pattern. When a bearish triangle forms on the chart, it often signals a serious breakout. Many miss this opportunity because they don't know what to look for.

Practically, a bearish triangle works on a simple principle: seller pressure accumulates, the price makes lower highs, and support remains flat. This creates an ideal trap for entering a short position.

There are mainly two types. The first is a descending triangle. This is when you have flat support at the bottom, and the upper line slopes downward. This is the most aggressive signal because selling pressure clearly increases with each test. The second type is a symmetrical triangle, where both lines converge. It can break out in either direction, but if you're in a downtrend, bet on the bears.

How do I use this? First, I wait until the bearish triangle is fully formed. I look for at least three touches of support and three touches of the upper line. Then I monitor the volume. When the price breaks support on good volume — that's when I enter.

I place my stop-loss above the last high inside the triangle. This makes sense because if the price returns there, the pattern is broken. For the target price, I use a simple formula: take the height of the triangle and subtract it from the breakout point. For example, if the triangle is 50 points high and the breakout is at level 100, then the target is 50.

Why does this work? The bearish triangle is one of the most reliable patterns because it shows the real imbalance between buyers and sellers. It works everywhere: stocks, crypto, forex, commodities. It’s especially visible on swings and positions.

My advice: don’t rush to enter at the first touch of support. Wait until the descending triangle shows several tests. The more tests — the stronger the breakout will be. I often see traders enter too early and lose their position on a false breakout. Patience is key here. When everything lines up correctly, the bearish triangle will give you excellent risk-reward. This is one of my favorite patterns for trading in downtrends.