downtrend

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noun

A usually swift downward trend, as in prices: decline, descent, dip, dive, downslide, downswing, downturn, drop, drop-off, fall, nosedive, plunge, skid, slide, slump, tumble. See increase/decrease.

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:
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This trader's tool can help you gauge an asset's direction and profit from it! Track Stock Prices With Trendlines
Any trading career will have its ups and downs. Find out how to maximize the good times. The Multiple Lives Of A Stock Trader
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. Finding Market Movement With The ADX
Learn how to spot the pivot point from which a new movement will emerge. Find A Trend With The Partial Retrace

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

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