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Rick

Descending Trend Channel

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Descending Trend Channel

If connecting the price bottoms of a particular stock or index compose a downward sloping line parallel to a line connecting the tops of that stock or index, the Descending Trend Channel is the area between the two lines.

This is a daily chart of McDonald's Corporation. An ascending trend channel is formed connecting the price tops and bottoms from April to July. In this case, when the ascending channel is penetrated, a descending trend channel is formed, from July to September.

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