Schematic diagram of a descending trend line. The composition of the descending trend line is exactly the opposite of that of the ascending trend line. After the market reaches a temporary high point A, it begins to decline. After dropping to point B, it rebounds, forming a new high point C. The new high point C is lower than the previous high point A. By drawing a straight line between high point A and high point C, we obtain a descending trend line. As long as the price continues to operate below this descending trend line, we will primarily focus on short positions. When the price declines to point D and rebounds near the descending trend line, facing resistance, this is our opportunity to enter a short position. As long as the price remains below this descending trend line, we can repeatedly short when the price rebounds near the descending trend line until this descending trend line is effectively broken. At the same time, this also means that the downward trend may turn into an upward trend.
