Descending Channel
a.k.a. Falling channel, Down channel
Two parallel downward-sloping lines that contain price as it makes lower highs and lower lows.
In plain English
Two parallel downward-sloping lines that contain price as it makes lower highs and lower lows.
A descending channel is a staircase going down, with walls. A descending trend line runs along the lower highs and a parallel line along the lower lows.
Traders may sell near the upper wall in a downtrend or watch for a break above it as a sign the decline is ending. Compare ascending channel.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.