Descending Trendline

A descending trendline is a diagonal trendline drawn over price action that connects a series of lower-lows or lower-highs.

Descending trends are plotted over bearish trending markets in order to forecast where the price is likely to go if the downtrend continues. Descending trends are also used to indicate possible reversals in the general trend.

If the price should break above a descending trend then it can be viewed as a bullish signal. When an asset is trading below a descending trendline it’s viewed as resistance and when the price is trading above it, it’s regarded as support.

WE ACCEPT

Open your EverFX account

It takes only a few minutes and even fewer clicks to enter the promising and exciting world of trading. Take the first step by clicking on the link below.

Trading involves significant risk of loss

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73,74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please consider our Risk Disclosure