📉 Spotting a Downtrend The Ultimate Simple Guide
Want to catch when the market is slipping? Here are the key clues to look for:
1. Lower Highs & Lows
When price keeps forming new lower peaks and dips, it’s trending down.
2. Fibonacci Pullbacks
A small recovery followed by rejection at key Fib levels often signals more downside.
3. Support Breakdowns
When major supports are breached, sellers usually stay in control.
4. Falling Channels
Price flowing inside a downward sloping channel? That’s a clear trend cue.
5. Bear Flags
A small bounce after a sharp dump can lead to another leg down.
6. Rising Volume on Red Candles
Heavy volume on drops = strong selling pressure.
7. Below Moving Average
If price stays under the MA line, don’t expect a trend reversal soon.
8. MA Bearish Cross
When a short-term MA dips under a longer one, it’s a classic bearish trigger.
9. Elliott Wave Pattern
Downtrends often unfold in 5 structured waves watch for them.
🔚 Final Word:
Tracking these signals helps you dodge fake entries and catch profitable shorts or exits.
💬 Which one do you already use? Drop your method in the comments!