This line acts as "dynamic resistance." As long as the price stays below this line, the downtrend is intact. 2. Moving Averages (MA) Basic concepts of trend - Fidelity Investments
To confirm a downtrend, you must see the "staircase" pattern moving down. 1. Drawing Trendlines This line acts as "dynamic resistance
Each trough (bottom) is lower than the previous one. This line acts as "dynamic resistance
Draw a diagonal line connecting at least two (ideally three or more) falling peaks . This line acts as "dynamic resistance
Prices fall because the supply of the asset exceeds its demand . 🛠️ Identifying the Trend
A downtrend is a market phase where the price of an asset consistently moves lower over time. It is visually and structurally defined by: Each peak is lower than the previous one.