# How Can I Tell a Bearish Indices Trend?

## Explain How To Identify Indices Trading Down Indices Trend Market Direction

How Can I Tell a Bearish Indices Trend? - How Can I Define a Bearish Indices Trend?

A bearish indices trend or a downward indices trend is defined by indices prices closing with lower highs and lower lows. This is the definition of a bearish indices trend.

The example explained and illustrated below defines the bearish indices trend setup

**Simple Way To Identify Indices Trading Bearish Indices Trend and Downward Indices Trends**

Indices Trend is the stock indexes trading market tendency of stock indices prices to move in a particular direction for a period of time

For a Downward indices trend the stock indexes price will move in a general market direction downwards.

This means indices prices will close lower than where they opened.

## How Do I Identify Indices Downward Trend

A downward indices trend line is drawn above the downward indices trend setup formed by consecutive lower highs, the downward indices trend line must connect at least two highs, with the most recent high being lower. For our down indices trend examples we shall use the MT4 technical analysis software charts to illustrate an example of the downwards trend.

Since stock indexes price moves down in a zigzag manner indices traders normally draw a downward indices trend line which shows the general downward indices trend direction. In stock indexes trading technical analysis, this general direction is referred to as the **TREND** by stock indexes traders. In technical analysis definition we can define this down indices trend line is drawn on a Indices Trading chart showing the resistance levels **(bearish market direction)**.

**Explain How To Identify Indices Trading Down Indices Trend Market Direction**

A indices trading down indices trend bearish market indices trend occurs when the stock indexes price makes a series of lower highs and lower lows. Each high is lower than the previous high - **lower high**, and each low is lower than the previous low - **lower low **therefore showing bearish stock indexes price indices trend movement.

Down indices trend indices trend lines gain more validity each time stock indexes price touches the downward indices trend line but does not penetrate the downwards indices trend line. A down indices trend bearish market remains the general trend direction until this series of lower highs and lower lows is broken - indices trend line break.