| Descending Channel | |
 A downward moving channel formed by two parallel, downward sloping trendlines. The upper trendline connects a stock's highs over a period of time, with each subsequent high price lower than the previous. Conversely, the lower trendline connects the stock's lows, with each subsequent low price lower than the previous. |
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 As a general rule of thumb, the failure of any move within an established price channel to reach one side of the channel usually indicates that the trend is shifting and increases the likelihood that the other side of the channel will be broken. Thus, the clearing of the lower trendline could indicate an accelerating (downward) trend and the clearing of the upper trendline could indicate a decelerating (downward) trend. |
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 Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more. Channeling: Charting A Path To Success - Find out how to build these charts showing buy, sell, stop-loss and take-profit points, and even estimate length of trade. Speed Resistance Lines - Discover how to measure the line of an uptrend or a downtrend. Simple Moving Averages and Volume Rate-of-Change - It is very important traders confirm their buy and sell signals, which can be as easy as comparing two very simple indictors. |
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