Descending Tops

In chart analysis, the term “descending top” denotes the lowest point reached by a chart pattern before an increase.

Example: Over the course of a trading day, the price of a stock falls to 28.20 francs per share before rising to 28.22 francs per share. The rate then falls to 28.19 before climbing to 28.21. It then declines once more until it reaches 28.18 before recovering and increasing to 28.21. The lowest points before each increase (28.20 francs, 28.19 francs and 28.18 francs) would be indicated as descending tops on a chart tracking the price of the stock.

See also: Ascending tops

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