Describes the movement of a stock towards a lower price. Any downtrend will continue as long as there are low highs and continuously lower lows on a stock chart of any asset or security. When these conditions are no longer met, a reversal begins. Some traders immediately look to sell off a stock on a downtrend, while others attempt to profit from buying the stock at a lower price and holding it until the reversal occurs (or simply short selling).
Downtrend
Market Terms
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Downtrend.