Indices Downward Indices Trend Definition

A downward indices trend in indices trading is the tendency of indices prices to move in a downward direction for a period of time in a general direction downward.

Down Trends can be analyzed using downward indices trend lines.

Downward indices trend line analysis helps traders to define the downward direction of the stock indices trading market. Down indices trend lines connect a series of stock indices price highs forming a sloping indices trend which represents the general downwards movement of the stock indices price.

For a downward sloping line this is known as an down indices trend - the indices trend line drawn is known as an downward indices trend line.

Downward Indices Trend Line

A downward indices trend line is drawn above the pattern formed by consecutive lower highs, it must connect at least two highs, with the most recent high being lower.

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

Indices Trading Down Indices Trend Definition

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

Indices Trading down indices trend lines gain more validity each time stock indices price touches but does not penetrate the indices trend line. A down indices trend remains the general direction until this series of lower stock indices price highs and lower stock indices price lows is broken -indices trend line break reversal indices signal.