A descending trendline resistance is a downward-sloping trendline connecting several price highs. It represents a dynamic resistance area below which price remains as long as the trend is contained.
In trading, a move back towards this resistance is a technical setup worth monitoring. Traders may monitor price approaching the descending trendline or wait for a breakout above it. A break above the trendline can indicate a change in market dynamics and may lead to a bullish impulse.
As with any resistance breakout, a pullback to the trendline may also occur after the breakout before a potential continuation of the bullish move.
The Descending Trendline Indicator automatically detects and displays the resistance directly on the ProRealTime chart. It allows you to quickly see its position relative to price, without having to manually search for and draw the trendline.
Automatic display saves time in chart analysis and makes it easier to monitor price returning towards the resistance or a breakout in progress.
Many parameters allow you to adapt the display to your own criteria. All settings can be adjusted directly from the indicator's “Configuration” menu in ProRealTime, without modifying the code.
To automatically find stocks trading below a descending trendline, use our Trendline Breakout Screener.
Adjustable validation criteria:
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Disclaimer
Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations. The automated trading systems offered have been developed and optimised using historical data; however, past performance is no guarantee of future results. Investing in the financial markets involves risks up to and including the total loss of capital. The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.
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