Descending Tops


DEFINITION of 'Descending Tops'

A pattern in charts where each peak in price is lower then the previous peak in price. The pattern signals a bearish trend in the security.

Descending Tops

The above is an example of descending tops.

BREAKING DOWN 'Descending Tops'

If the current peak in the price is higher then the previous peak in a descending top environment, the trend is broken and this is a bullish signal.

  1. Trend

    The general direction of a market or of the price of an asset. ...
  2. Ascending Tops

    This refers to a series of peaks, each peak higher than the previous ...
  3. Pattern

    In technical analysis, the distinctive formation created by the ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, ...
  6. Confirmation

    The use of an additional indicator or indicators to substantiate ...
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