Markets don’t rise forever. Sometimes it’s a small pullback… but sometimes, it’s the start of a heavy downtrend.
Here’s how to spot a REAL downtrend using only price action:
1️⃣ Lower Highs & Lower Lows: If each bounce is weaker than before, sellers are winning.
2️⃣ Failed Rallies: Price bounces but fails at resistance — a warning that buyers have no strength.
3️⃣ Broken Support Levels: Once key support is gone, price often drops fast.
4️⃣ Downward Channel: If price is moving inside two falling lines, the trend is clear — it’s DOWN.
5️⃣ Bear Flags & Trap Bounces: Quick up moves after a dump? Usually a trap before falling lower.
6️⃣ Heavy Volume on Drops: Big red candles with strong volume = sellers in control.
7️⃣ MA Rejection: If price keeps failing to break above the 50 or 200 MA, sellers are still active.
8️⃣ Death Cross: When the 50 MA crosses below the 200 MA — it’s often a major bearish sign.
9️⃣ Elliott Wave Pattern: Classic 5-wave drop — 3 waves down, 2 weak bounces.
👉 Why It Matters:
Recognizing these signs protects your capital. No fancy tools — just pure price action.
Be smart. Protect your profits. Trade with the trend.