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.

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).