Downtrend
A market structure defined by lower highs and lower lows, reflecting sustained selling pressure.
In a downtrend, each rally peak is capped below the previous one (lower high) and each bounce low undercuts the prior low (lower low). Bears are in control — rallies are selling opportunities, not buy signals.
A downtrend breaks when price posts the first significant higher low and then takes out a prior lower high. That sequence — not just a single green day — is the evidence needed to shift bias.
Related Terms
Breakdown
Price moving decisively below key support, signalling that sellers have overwhelmed buyers at that level.
BeginnerDeath Cross
The 50-day moving average crossing below the 200-day moving average — a widely-watched long-term bearish signal.
IntermediateLower High
A rally peak that fails to reach the prior swing high — the second structural requirement of a defined downtrend.
BeginnerLower Low
A trough that undercuts the prior swing low — one half of the structural definition of a downtrend.
BeginnerReversal
A sustained change in the direction of the prevailing trend, not just a temporary counter-move.
IntermediateTrend
The persistent directional bias of price over a defined timeframe — up, down, or sideways.
BeginnerTrendline
A straight line drawn through successive swing highs (downtrend) or swing lows (uptrend) to visualise the trend's slope.
BeginnerUptrend
A market structure defined by a sequence of higher highs and higher lows, signalling persistent buying pressure.
Beginner