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General TradingD
Descending Channel
A Descending Channel is a chart pattern formed by two parallel downward-sloping trendlines connecting a series of lower highs and lower lows. It indicates a bearish trend, with traders looking to sell near the upper trendline and potential breakout signals when price moves above the upper boundary.
Example
“The stock traded within a descending channel for three months, with each bounce off the lower trendline offering a short-term buying opportunity.”