Downward Indices Trend Definition

A downward indices trend in indices trading is the tendency of indices trading prices to move in a downwards direction for a period of time in a general direction downwards.

Down Trends can be analyzed using downward indices trend lines.

Downward indices trend line analysis helps traders to define the downward direction of the market. Down indices trend-lines connect a series of stock indices trading price highs forming a sloping indices trend which represents the general downwards movement of the stock indices price.

For a downwards sloping line this is known as an down indices trend - trend line drawn is known as an downward indices trend-line.

Downwards Stock Indices Trendline

A downward indices trend-line is drawn above pattern setup formed by consecutive lower highs, it must connect at least two highs, with most recent high being lower.

Since stock indices trading price moves down ward in a zigzag manner traders normally draw a line which shows the general downward direction. In stock index market technical analysis, this general direction is referred to as the Indices Trading TREND by stock indices traders. This down indices trend-line is drawn on Indices chart showing the resistance levels (bearish indices trend market direction).

Indices Trading Down Trend Definition

A indices trading down trend occurs when the stock indices trading price forms a series of lower highs & lower lows. Each stock indices price high is lower than the previous stock indices price high - lower high, & each stock indices price low is lower than the previous stock indices price low - lower low therefore showing bearish stock indices price movement.

Indices Trading down trend-lines gain more validity each time stock indices trading price touches but doesn't penetrate the trend-line. A down trend remains the general direction until this series of lower stock indices price highs & lower stock indices trading price lows is broken -indices trend-line break reversal indices trade signal.