Descending triangle

Continuation shape74 completed examples in the record

What the shape is

A flat lower boundary with falling highs above it. It resolves in its textbook direction more often than not at sixty bars, but with a median change of about a quarter of one percent — smaller than typical round-trip costs.

What followed it

HorizonExamplesTextbook directionMedian changeMiddle half
5 bars7349.3% at or below a coin flip-0.31%-1.98% … +1.77%
10 bars7350.7%-1.24%-2.78% … +1.97%
20 bars7350.7%+0.17%-2.88% … +3.28%
60 bars7357.5%-0.28%-5.26% … +4.76%

10 instruments, 1d / 4h, 2017-08-17 to 2026-07-25 — 182,341 bars and 661 completed formations.

engine v1.0.0 · Record generated 2026-07-25

  • These figures describe past occurrences of the same shape. They are not a projection of this chart.
  • 661 formations is not a large sample, and the instruments are correlated USDT pairs, so the effective sample is smaller still.
  • Below 30 examples no rate is printed at all.
  • Changes are close-to-close and exclude fees, funding and slippage.
  • Medians and quartiles pooled across instruments are sample-weighted approximations, not exact pooled quantiles.
  • A formation is timed from the bar its break became observable, and every change is measured strictly after that bar.
  • Pooled across every instrument and both backtest timeframes.

The same shape, split by interval

Interval 1d

HorizonExamplesTextbook directionMedian changeMiddle half
5 bars5too few examples+2.78%+2.67% … +2.88%
10 bars5too few examples+9.92%+8.42% … +11.42%
20 bars5too few examples+10.09%+6.11% … +14.08%
60 bars5too few examples+13.04%+8.81% … +17.26%

Interval 4h

HorizonExamplesTextbook directionMedian changeMiddle half
5 bars6851.5%-0.54%-2.32% … +1.69%
10 bars6854.4%-2.06%-3.60% … +1.27%
20 bars6852.9%-0.56%-3.54% … +2.48%
60 bars6858.8%-1.26%-6.29% … +3.84%

The backtest covered the daily and 4-hour intervals only. Only one shape reaches the publication floor on the daily, against eight on the 4-hour — so every pooled rate above is in practice a 4-hour statistic. The console scans five intervals; the three not listed here have no historical record at all.

How it is detected

Formations are matched against swing pivots rather than raw bars, so a single spiky candle cannot create one. A pivot is committed only once price reverses by more than 2.5 times ATR(14), floored at 0.8% of price. A detection is reported only at confidence 0.72 or above — the library default, unmodified.

Descending triangle in crypto: the measured record | Chart Intel