Descending (Down) Trendline

Descending (Down) Trendline

The declining wave in a stock or commodity is composed of a series of ripples. When the tops of these ripples form on, or very close to, a downward slanting straight line, a basic Descending or Down Trendline is formed.

Source: Edwards, Robert and Magee, John.Technical Analysis of Stock Trends 9th Edition; (c) 2007.












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Several different trendlines can be in play at any one time. Important questions to ask are: Which trendlines are more valid? What kind of filters should be applied to breaks of trendlines? What does a failed trendline break signal?