How to determine if the current market trend is bearish?
1: Downward trend line: If you casually draw a trend line, you will find that every rebound fails to surpass the previous high, making this bearish pattern obvious and clear.
2: Heavily pressed by moving averages: Regardless of the type of moving average (MA or EMA), you will notice that the price is always pressed down by them, struggling to rise each time.
3: Highs and lows are getting lower: The entire price structure is sloping downwards, with each rebound failing near the previous high, creating a continuous weakening pattern.
4: Short-term moving average crosses down: When the short-term moving average crosses below the long-term moving average, forming a 'death cross', the downtrend is confirmed.
Remember! Judging the trend is just the first step; what really helps you maintain your position is position management and stop-loss settings. Always operate according to your trading rules, and don’t let emotions sway your judgment!
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