What Triggers a Bearish Trendline
A Bearish Trendline appears after a double bottom breakdown — a column of O's falls below the low of an earlier O column, confirming sellers have pushed price under a level it previously held. That confirmation "unlocks" the line.
How It's Drawn
The line starts one box above the most recent significant high and falls diagonally at a 45-degree angle from there, moving down one box for every column that passes. It functions as a falling resistance level — a ceiling that moves downward as the underlying downtrend continues.
Reading the Signal
- Price below the line: The downtrend is considered structurally intact — the ongoing bearish (sell-side) picture.
- Price breaks above the line: The resistance has failed. This is typically the first visual sign that selling pressure is easing, though it doesn't guarantee a reversal.
Where to See It
Toggle "Bearish Only" in the trendline options on any chart to isolate this line. Pair it with the Sell Signal (a fresh column of O's) for the fuller picture — the individual signal tells you what just happened, the trendline tells you the broader structure it's happening within.