What are Descending Bottoms?

In financial or stock markets, descending bottoms are a charted pattern of the falling price of a particular security or group of securities, which are also known as stocks. Descending bottoms indicate a bearish or falling trend in the market for the worth of those particular stocks. When financial indexes point toward the infamous bear market, investors and businesses become nervous. Many stocks in a bear market are selling for a low price thereby gaining the investor fewer dividends and the seller less operating capital. In a bull market, investors and businesses are tending to gain higher dividends and capital. A bearish market, driven by descending bottoms, is a cause for concern. A bullish market that is driven by ascending tops is, of course, a cause for optimism. When analysts wish to investigate the value of a specific stock or group of stocks, they will chart the performance of the stock or stocks over the course of a particular time period. These charts are a visual ...  more