What are Descending Tops?
The term “descending tops” is used to describe the appearance of charts used to track securities, stocks, and other indicators of the health of a market. In order to explain descending tops, it helps to visualize a chart tracking something like daily values for a stock. All financial charts have peaks and troughs, reflecting rises and falls in value. In the case of descending tops, the peaks grow steadily lower, indicating that the value is falling. Depending on the current status of your economy, you may be able to see some examples of descending tops in the financial pages of the newspaper. Many people view descending tops as a sign that the market may be turning “bearish,” meaning that an overall recession or decline in value is about to occur. This is not always the case, however. Sometimes descending tops appear in an isolated instance, reflecting the fact that a particular stock or security is experiencing a downturn, but the market as a whole may be perfectly healthy. The opposi
