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Descending Tops

 
Investment Dictionary: 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.



The above is an example of descending tops.

Investopedia Says:
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 Links:
Prices never move in straight lines, so it's time to learn about this powerful trend-following technique. Peak-and-Trough Analysis
To "find your game" in technical analysis, you need to be able to recognize reversals and continuations as they form. Price Patterns - Part 1
Here we pay some attention to the triangle, usually one of the first chart patterns that a novice technician learns. Continuation Patterns - Part 1


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Chart pattern wherein each new high price for a security is lower than the preceding high. The trend is considered bearish.

 
 

 

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Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more

 

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