šØ How to Spot a Downtrend (Before It Wrecks You) š§ š
Markets donāt just go up. So how do you know if itās just a dip⦠or a real downtrend forming?
Hereās your no-BS checklist to spot it early ā no crystal ball needed: š
š» 1. Lower Highs + Lower Lows
If price keeps stepping down, thatās your clearest signal. No indicators needed.
š 2. Failed Rallies
Price bounces⦠but dies at key levels (like Fibonacci)? Sellers still own the show.
š§± 3. Support Breaks
Old support turns to dust = danger ahead. Next support may be way lower.
š 4. The Downward Channel
Price bouncing inside a falling staircase = trend still alive (and cruel).
šŖ¤ 5. Trap Bounces (Bear Flags)
Sharp drop ā”ļø weak rebound? Another leg down often follows. Donāt chase.
š 6. Volume Doesnāt Lie
Red candles + heavy volume = big boys are exiting.
š 7. Moving Averages Struggle
Stuck under the 50 or 200 MA? Trend = not your friend.
ā ļø 8. Death Cross Alert
When the 50MA crosses below 200MA ā even long-term holders start to panic.
š 9. 5-Wave Drop Pattern
Downtrends often play out in 5 ugly waves ā get familiar with the flow.
š” Why it matters:
Catch the downtrend early =
ā
Save your capital
ā
Avoid dead bounces
ā
Trade with confidence ā not hope
Donāt overcomplicate it. Let price speak.
š¬ Whatās YOUR go-to way to spot a downtrend? Drop it below š
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