Descending Channel

When your bottle of perfume continues to evaporate and/or get used up and out, it is a descending Chanel (number 5 is our fave, but can really be any number).

A Descending Channel, however, is different. It is, in fact, a stock trading pattern, in which a given stock started at, say, $25, then missed its quarter and dropped to $23 fast. It then suffered more bad news, plus rumors of an accounting restatement—and the stock dropped another $4.

It has accelerated its decline and is now in a pattern of a descending channel, which is usually a bearish sign for stock traders who stare at charts to try and glean the future of stock trades.

See: Chartist. See: Technical Trading. See: Ascending Triangle. See: Descending Triangle.