Descending Trendline

A descending trendline is one of the most common technical tools for indicating falling prices. It consists of two types, descending top trendline, which is falling from high prices, and descending bottom trendline, which is falling from low prices.

Just like other trendlines, descending trend lines measures if the trend will continue. A descending top trendline measures the resistance of an asset. If a price breaks above a descending top trend, it can be regarded as a bullish signal. A descending bottom trending measures the support of an asset. If a price breaks below a descending bottom trendline, it can be viewed as a bearish signal.

Many experts in the field have been known to advise to wait for additional signals before confirming the downtrend line and taking market action.