What is a Downtrend?
Down Indices trend is when the stock indexes price of a stock indices chart is moving lower and lower. Indices Trading indices prices generally close lower than where they opened.
How to Trade Downward Indices Trend: Indices traders use the downward indices trend direction to open sell indices trades
Downward Indices Trend
Drawn using a downward indices trend line
What is a Downward Indices Trend? - What is a Indices Trading Downtrend? - What is a Downtrend?
The MetaTrader 4 stock indexes trading platform provides charting tools for drawing trends on stock indices charts. To draw indices trend on indices charts traders can use the indices trend line drawing tool provided on the MT4 software that is shown below.
Definition of a Indices Trading Downward Indices Trend and Meaning of Indices Trading Down
To draw a downward indices trend line on the MT4 stock indexes trading platform and select point A where you want to start drawing and then point B where you want the it to touch. You can also right click on the trend-line and on the properties option select the option to extend its ray by ticking the "ray check box", if you do not want to extend it, then uncheck this option in your indices trading platform.
The indices trend is your friend. Is a popular saying among indices traders because you should never trade against it. This is the most reliable indices trading method to trade Indices Trading because once stock indices prices start to move in one direction they can move in that particular direction for quite some time in what is known as a trend.
Principles of How to Draw and Define Indices Trend
Use candlestick indices charts
- The points used to draw are along the highs of the stock indexes price bars in a falling market. A downward bearish indices trend move is defined by lower highs and lower lows.
- The points used to draw the indices trend lines are extremes points - the high or the low indices price. These stock indexes price extremes are important because a close beyond the extreme tells indices traders that the indices trend of the indices trading instrument might be changing. This is an exit indices signal.
- The more often a downward indices trend is touched by stock indexes price but not broken, the more powerful the downward indices trend signal.