This pattern is used in Technical Analysis. A Descending Trend Channel is observed by drawing two trendlines; one through high prices of an asset and the other through the low prices.If the trend in prices is downwards then the space between the trend lines form the Descending Trend Channel.As long as the prices fall in this band,the analysts can predict future movements.If there is a sudden break such that prices go up or down the barriers,one can predict a bull or bear market scanario.