A Downtrend is a sequence of lower highs and lower lows. Each rally tops below the last, showing sellers in control — the trend is down until that structure breaks.
How traders use it
- Trade with the trend — sell rallies to lower highs.
- The trend holds while lower highs and lower lows continue.
- A higher high is the first sign the downtrend may be ending.
See it in dtcharts
Mark support, resistance and structure on any chart in the dtcharts terminal with the drawing tools.