What is a downtrendWhat is a downtrend in trading? When the price of an asset... More in trading?
When the priceWhat are value stocks? A value company is a company that app... More of an or a decreases steadily over a period of time, it is said that the priceWhat is price? The price is the measure of the value of good... More is in a downtrend. The opposite of a downtrend is an . If the price is developing rather flatly, it is called a .
Even if the is clearly down, there will still be fluctuations in price. Thus, a general downtrend will also incorporate temporary increases in price.
This means that when the price of an asset moves in a particular direction, it does not move in a straight line. There may be small peaks and troughs: highs and lows within the trendWhat is a market trend in trading? A market trend is the ten... More. A downtrend can, therefore, be identified by continuously lower highs and lower lows.
The chart below is an example of a price in a downtrend:
(2) Lower highs
Further reading
Many are based on . One example is our forex beginner strategy:
To learn more about determining the market directionThe direction of the price movement of a financial instrum... More, continue here:
