A descending channel is the statistically range bound price action of a descending price trend contained between downward sloping parallel lines.
Lower lows and lower highs characterize the descending/down trend price pattern.
Technical analysts draw a descending channel by manually drawing an upper trendline that connects the swing high pivot points, and a lower channel line that joins the swing low pivot points, or using a channeling drawing tool.
Some trading software or charting services can automatically plot descending price channels.
