This line acts as "dynamic resistance." As long as the price stays below this line, the downtrend is intact. 2. Moving Averages (MA) Basic concepts of trend - Fidelity Investments
Prices fall because the supply of the asset exceeds its demand . 🛠️ Identifying the Trend This line acts as "dynamic resistance
To confirm a downtrend, you must see the "staircase" pattern moving down. 1. Drawing Trendlines This line acts as "dynamic resistance
Draw a diagonal line connecting at least two (ideally three or more) falling peaks . This line acts as "dynamic resistance
A downtrend is a market phase where the price of an asset consistently moves lower over time. It is visually and structurally defined by: Each peak is lower than the previous one.