Descending Trend Channel

In charting, the term descending trend channel refers to a set of parallel trend lines which indicate the highest and lowest points in a consistently declining rate.

When used on a stock chart, both of the lines making up a descending trend channel are straight, with the lower line following the lowest prices and the upper line following the highest prices indicated by the descending line. A descending trend line is used to show that a rate has declined steadily over a given period.

See also: Ascending trend channel

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