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downtrend

 
Dictionary: down·trend   (doun'trĕnd') pronunciation
n.
A downward trend; a downturn.

downtrend down'trend' v.

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Investment Dictionary: Downtrend
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Describes the price movement of a financial asset when the overall direction is downward. A formal downtrend occurs when each successive peak and trough is lower than the ones found earlier in the trend.



Notice how each successive peak and trough is lower than the previous one. For example, the low at Point 3 is lower than the low at Point 1. The downtrend will be deemed broken once the price closes above the high at Point 4.

Downtrend is the opposite of uptrend

Investopedia Says:
Many traders seek to avoid downtrends because they can drastically affect the value of any investment. A downtrend can last for minutes, days, weeks, months or even years so identifying a downtrend early is very important. Once a downtrend has been established (series of lower peaks) a trader should be very cautious about entering into any new long positions.

Related Links:
Discover how to measure the line of an uptrend or a downtrend. Speed Resistance Lines
This trader's tool can help you gauge an asset's direction and profit from it! Track Stock Prices With Trendlines
The success or failure of your long- and short-term investing depends on recognizing the direction of the market. Short-, Intermediate- and Long-Term Trends
Take a closer look at this indicator, which refines your insight into the strength of a prevailing trend. Discerning Movement with the Average Directional Index - ADX
Learn how to spot the pivot point from which a new movement will emerge. Find A Trend With The Partial Retrace


Thesaurus: downtrend
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Translations: Downtrend
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Dansk (Danish)
n. - nedadgående tendens

Nederlands (Dutch)
zwakke financiële markt, trend omlaag

Français (French)
n. - baisse, tendance à la baisse

Deutsch (German)
n. - Abwärtstrend, Abwärtsbewegung

Ελληνική (Greek)
n. - καθοδική τάση

Italiano (Italian)
tendenza al ribasso

Português (Portuguese)
n. - tendência (f) ao decréscimo, perda (f) no volume de vendas (Com.)

Русский (Russian)
тенденция к сокращению

Español (Spanish)
n. - tendencia descendente

Svenska (Swedish)
n. - nedåtgående trend

中文(简体)(Chinese (Simplified))
下降趋势

中文(繁體)(Chinese (Traditional))
n. - 下降趨勢

한국어 (Korean)
n. - 하강 경향

日本語 (Japanese)
n. - 下降傾向

العربيه (Arabic)
‏(الاسم) انخفاض في النشاط التجاري أو الاقتصادي‏

עברית (Hebrew)
n. - ‮שקיעה, ירידה‬


 
 
Learn More
Trendline (finance term)
Technical Analysis (in banking)
Wedge pattern

In forex how do you make money in a downtrend? Read answer...

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Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved.  Read more
Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Thesaurus. Roget's II: The New Thesaurus, Third Edition by the Editors of the American Heritage® Dictionary Copyright © 1995 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.  Read more
Translations. Copyright © 2007, WizCom Technologies Ltd. All rights reserved.  Read more