đ» How to Spot a Downtrend â Simple Trader's Guide đ»
đ 1. Lower Highs & Lower Lows
When price keeps making đœ lower highs and đœ lower lows, it's a clear sign of a downtrend.
đą 2. Fibonacci Levels
If price bounces and then falls again from key đ Fibonacci levels, the trend is likely to continue downward.
𧱠3. Broken Support Levels
When price breaks important 𧱠support zones, expect further decline.
đ 4. Downward Channel Patterns
A price moving steadily inside a đ descending channel confirms a strong bearish trend.
đ© 5. Bear Flag Patterns
After a sharp drop, a small upward flag đ often leads to another leg down.
đ 6. High Volume on Drops
When price falls with đ increased volume, it means sellers are dominating.
đ 7. Moving Averages
If price stays below the đ moving average line, the trend is still bearish.
đ 8. MA Crossover Signals
A short MA crossing below a long MA = đ bearish momentum is building.
đ 9. Elliott Wave Patterns
Downtrends often form in đ» 5-wave structures, showing the move is not over yet.
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Conclusion:
Recognizing these signals can help you avoid losses or find smart short entries.
â ïž Donât guess the market â follow the signs.
đŹ Which one of these methods do YOU use? Drop a comment below! đ