📉 Mastering the Downtrend: A Simple Guide
Want to catch the market slipping early? Here’s what to watch for:
1. Lower Highs & Lower Lows
Consistent drops in peak and bottom levels indicate a downtrend.
2. Fibonacci Retracements
If a small bounce gets rejected at key Fib levels, more downside could follow.
3. Support Level Breaches
Breaking major supports usually signals sellers are in control.
4. Descending Channels
When price moves within a downward channel, it confirms the bearish trend.
5. Bear Flag Formations
A brief recovery after a sharp fall often leads to another dump.
6. Volume Spikes on Red Candles
High volume during sell-offs points to strong bearish momentum.
7. Staying Below Moving Averages
If price remains under the MA, a reversal is unlikely.
8. Bearish MA Crossover
Short-term MA crossing below the long-term one is a classic bearish signal.
9. Elliott Wave Patterns
Downtrends often play out in 5 clear waves—spotting them is key.
🔚 Bottom Line:
Recognizing these patterns helps avoid traps and spot better short or exit opportunities.
💬 Which indicator do you rely on? Share your go-to setup in the comments!
