How Do I Analyze XAUUSD Downward Trend?

How to Interpret a XAUUSD Downwards Trend

A downward trend in xauusd is the phenomenon of prices to move in a downwards direction for a long period of time.

Downward trends can be read & interpreted using a downward trend-line.

Downward trend line helps traders to define the general downward direction of the prices. Downward trend-lines connect a series of price highs forming a sloping downward trend which represents the general downwards movement of the price.

For a downward sloping trend line this is known as a downwards trend - the trend line drawn is known as a downward trend line.

Read a Downward Trend

A downward trend line is plotted above the price pattern formed by consecutive lower highs - lower price highs - downward trend line must connect at-least 2 price highs - with the recent most price high being lower.

Since price moves down ward in a zig-zag manner - traders normally draw a trend line which shows the general downwards price direction. In analysis - this general direction is referred to as the Trend. This downward trend line is drawn on a chart showing the resistance levels of the downwards moving prices.

How Do I Analyze a XAUUSD Downward Trend? - How Do I Interpret a XAUUSD Down-wards Trend

A downwards trend forms when price makes a series of lower price highs & lower price lows. Each price high is lower than the previous price high - lower price high, & each price low is lower than the previous price low - lower price low - therefore showing a downwards price movement.

XAUUSD downwards trend-lines gain more validity every time the price touches the downward trend-line but doesn't penetrate the downward trend line. A downwards trend remains the general price direction til this series of lower price highs and lower price lows is broken - trend-line break reversal signal.

How Do You Interpret XAUUSD Down-wards Trend