What is an Examples of a Oil Trading Down Trend? Identifying Down Trends in Oil Trading

A downward oil trend in oil trading is the tendency of oil prices to move in a downwards direction for a period of time in a general direction downwards.

Down Trends can be analyzed using downward oil trend lines.

Downward oil trend line analysis helps traders to define the downward direction of the market. Down oil trend lines connect a series of crude oil price highs forming a sloping oil trend which represents the general downwards movement of the crude oil price.

For a downwards sloping line this is known as an down oil trend - oil trend-line plotted is known as an downward oil trend line.

Downward Crude Oil Trendline

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

Since crude oil price moves downward in a zigzag manner traders normally draw a line which shows the general downward direction. In crude oil market technical analysis, this general direction is known as the Oil Trading TREND by crude oil traders. This down oil trend line is drawn on Oil Trading chart showing the resistance areas (bearish oil trend market direction).

What is an Example of a Oil Trading Down Trend? Identifying Downward Trends in Oil Trading

A oil trading down oil trend occurs when the crude oil price forms a series of lower highs and lower lows. Each crude oil price high is lower than the previous crude oil price high - lower high, and each crude oil price low is lower than the previous crude oil price low - lower low therefore showing bearish oil price movement.

Oil Trading down oil trend lines gain more validity each time crude oil price touches but does not penetrate the oil trend line. A down oil trend remains the general direction until this series of lower crude oil price highs & lower crude oil price lows is broken - oil trend-line break reversal oil signal.