How Many Chart Tops Confirm a Trend Line?
To draw a down-wards trend line a trader needs at least two tops
To confirm a downwards trend line a trader needs at least three stock trading price tops to touch the downward trend line.
Example of Downwards Trend on a chart
How Many Chart Tops Confirm a Trend Line? - How to Use Trend Lines in Indices Trading
A down trend occurs when the stock trading price forms a series of lower highs & lower lows. Each price high is lower than previous high - lower high, and each low is lower than previous low - lower low therefore showing bearish price movement.
How Many Chart Tops Confirm a Trend Line? - How to Use Trend Lines in Indices Trading