All terms
Definition
Downtrend
A downtrend happens when price makes lower highs and lower lows. Sellers are in control.
Quick take
Lower highs and lower lows — sellers in control.
Keep this in mind every time you see downtrend on the chart — context is everything.
Did You Know?
Downtrends typically move faster than uptrends because fear is a stronger emotion than greed.
Common Beginner Mistake
Trying to 'catch the bottom' by buying every dip instead of waiting for clear evidence the downtrend has ended.