Definition of Downtrend:
A downtrend refers to the price action of a security that moves lower in price as it fluctuates over time. While the price may move intermittently higher or lower, downtrends are characterized by lower peaks and lower troughs over time. Technical analysts pay attention to downtrends because they represent something more than a random losing streak. Securities in a downtrend seem to be more likely to continue trending lower until some market condition changes, implying that a downtrend marks a fundamentally deteriorating condition.
A downward trend, tendency, or movement.
A downtrend can be contrasted with an uptrend.
Sustained downward movement in the price of a item or trading activity in an economy.
How to use Downtrend in a sentence?
- A change in trend is fueled by a change in the supply of stocks investors want to sell compared with the demand for the stock by investors who want to buy.
- There is not yet a confirmed downtrend in interest rates.
- Downtrends are coincidental with changes in the factors that surround the security, whether macroeconomic or specifically associated with a company's business model.
- Downtrends are characterized by lower peaks and troughs and imply fundamental changes in the beliefs of investors.
Meaning of Downtrend & Downtrend Definition