Glossary Term

Downtrend

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A downtrend is simply any extended period of time where the price of an asset is generally trading in a downward direction. Assets in a downtrend typically continue to set lower-highs and lower-lows until there is some kind of change in the trend. This lower-high, lower-low price action is characterized by brief bullish rallies that fail to break previous highs and then drop back down even lower than they were before.

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