How Can You Tell a Bearish Forex Trend? - How Can You Define a Bearish Forex Trend?
Definition of a Forex Downward Trend - Explain How to Identify Forex Down Trend Market Direction
How Can You Tell a Bearish Forex Trend? - How Can You Define a Bearish Forex Trend?
A bearish forex trend or a downwards forex trend is defined by prices closing with lower highs and lower lows. This is the definition of a bearish forex trend.
The example below defines the bearish forex trend setup
Simple Way to Identify Forex Bearish Trend & Downwards Forex Trends
Trend is the market tendency of forex prices to move in a particular direction for a period of time
For a Downward Forex trend the price will move in a general market direction downwards.
This means prices will close lower than where they opened.
Downwards Forex Trend - How Do You Identify Forex Downward Trend?
A downward forex trend-line is plotted above the downward trend setup formed by consecutive lower highs, the downwards forex trend-line must connect at-least 2 highs, with the most recent high being lower. For our down trend examples we shall use the MetaTrader 4 technical analysis software charts to illustrate example of the downward trend.
Since price moves downward in a zigzag manner forex traders normally draw a downward trend-line which shows the general downward trend direction. In Forex technical analysis, this general direction is referred to as the TREND by traders. In technical analysis definition we can define this down trend line is plotted on a Forex chart showing the resistance areas (bearish market direction).
Definition of a Forex Downward Trend - Explain How to Identify Forex Down Trend Market Direction
A forex downtrend bearish market trend occurs when the price makes a series of lower highs and lower lows. Each price high is lower than previous high - lower high, & each low is lower than previous low - lower low therefore showing bearish forex price trend movement.
Downtrend forex trend lines gain more validity each time price touches the downward trend line but doesn't penetrate the downwards trend line. A downtrend bearish market remains the general trend direction until this sequence of lower highs and lower lows is broken - forex trend-line break.
