๐ ๐๐จ๐ฐ ๐ญ๐จ ๐๐๐๐ง๐ญ๐ข๐๐ฒ ๐ ๐๐จ๐ฐ๐ง๐ญ๐ซ๐๐ง๐ โ ๐ ๐๐ข๐ฆ๐ฉ๐ฅ๐ ๐๐ซ๐๐๐๐ซโ๐ฌ ๐๐ฎ๐ข๐๐
Want to spot when the market is heading down? Here are some easy but powerful signs that a downtrend is in play:
---
1๏ธโฃ Lower Highs & Lower Lows
โก๏ธ If the price keeps making lower highs and lower lows, the trend is clearly down.
2๏ธโฃ Fibonacci Retracement
โก๏ธ A bounce to a key Fibonacci level followed by a drop suggests the market is likely to continue falling.
3๏ธโฃ Broken Support
โก๏ธ When important support levels break, it often leads to further declines.
4๏ธโฃ Downward Channel
โก๏ธ A price moving within a descending channel signals a consistent downtrend.
5๏ธโฃ Bear Flag Pattern
โก๏ธ After a sharp fall, a short upward correction (flag) can lead to another leg down.
6๏ธโฃ Volume Confirmation
โก๏ธ High volume on price drops = strong selling pressure. Bears are in control.
7๏ธโฃ Below Moving Average
โก๏ธ If the price stays below a key moving average, the trend remains bearish.
8๏ธโฃ MA Crossover
โก๏ธ A bearish crossover (short MA crossing below long MA) confirms a potential continued downtrend.
9๏ธโฃ Elliott Wave Count
โก๏ธ A 5-wave downward pattern often confirms a strong bearish move.
---
โ ๐๐จ๐ง๐๐ฅ๐ฎ๐ฌ๐ข๐จ๐ง:
Recognizing these signs early helps you avoid unnecessary losses and even spot good opportunities to short the market or exit positions.
๐ฌ Which of these tools do you use most?
Comment below and share your trading style!