Descending Tops

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Ascending Tops

    This refers to a series of peaks, each peak higher than the previous ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Trend

    The general direction of a market or of the price of an asset. ...
  4. Pattern

    In technical analysis, the distinctive formation created by the ...
  5. Mass Index

    A form of technical analysis that looks at the range between ...
  6. Money Flow Index - MFI

    A momentum indicator that uses a stock’s price and volume to ...
Related Articles
  1. Continuation Patterns: An Introduction
    Charts & Patterns

    Continuation Patterns: An Introduction

  2. Introduction To Technical Analysis Price ...
    Trading Strategies

    Introduction To Technical Analysis Price ...

  3. Peak-and-Trough Analysis
    Active Trading

    Peak-and-Trough Analysis

  4. Simple Moving Averages And Volume Rate-of-Change
    Technical Indicators

    Simple Moving Averages And Volume Rate-of-Change

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center