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.

Our proprietary indicator, IQC Zone, could confirm this penetration. It turned from green to red when the ascending trend channel was penetrated, and turned green again when the descending trend channel was penetrated.

You can choose up to four indicators at a time, such as IQC Zone, to display above the chart, by clicking on "Indicators" within IQ Chart. All drawing functions in IQ Chart Version 3.1, such as trendlines, are performed by clicking on "Toolbox".

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