What's a Downtrend?
Down Indices trend is when the stock indices price of a stock indices chart is moving lower & lower. Indices trading prices generally close lower than where they opened.
How to Trade Downwards Indices Trend: Indices traders use the downwards indices trend direction to open sell indices trades
Downwards Indices Trend
Drawn using a downwards indices trendline
What is Downward Indices Trend? - What's Indices Downtrend? - What is a Downtrend?
The MT4 platform provides charting tools for plotting trends on stock indices charts. To draw indices trend on indices charts traders can use trendline plotting tool provided on MT4 software that is illustrated and shown below.
Definition of a Downward Indices Trend & Explanation of Indices Trading Down
To draw a downwards indices trend line in MetaTrader 4 platform & select point A where you want to start drawing and then point B where you want the it to touch. You can also right click in trend-line and on properties option select option to extend its ray by checking 'ray check box', if you do not want to extend it, then uncheck this option in your indices trading platform.
The indices trend is your friend. Is a popular saying among indices traders because you should never trade against it. This is the most reliable indices trading method to trade Indices Trading because once stock indices prices begin to move in one direction they can continue moving in that particular direction for quite some time in what is known as a trend.
Principles of How to Draw & Define Stock Indices Trend
Use candle charts
- The points used to plot are along the highs of the stock indices price bars in a downwards falling market. A downwards bearish indices trend move is defined by lower highs & lower lows.
- The points used to draw the trend lines are extremes points - the high or the low indices price. These stock indices price extremes are important because a close beyond the extreme tells indices traders that the indices trend of the indices instrument might be changing. This is an exit indices signal.
- The more often a downward indices trend is touched by stock indices price but it's not broken, then the more powerful the downward indices trend signal.
