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What's an Explanation of a Down Trend? Identifying Down Trends in Gold Trading

A downward trend in gold trading refers to the sustained movement of prices in a downward direction over a period of time.

Down Trends can be analyzed using downwards trendlines.

Downward trendline analysis spots the price's drop direction. It links highs in a slope that shows the overall downward path.

A line sloping down marks a downtrend. It's called a downtrend line.

Downward Trend-Line

A downwards trend-line is drawn above setup formed by consecutive lower highs, it must connect at least 2 highs, with the most recent high being lower.

Because prices usually move down in a zigzag pattern, traders often draw a line to show the general downward direction. Traders refer to this general direction as the Gold TREND when analyzing the market. This downward trend-line is drawn on a chart, marking areas of resistance (a bearish trend).

What is an Explanation of a Down Trend? Identifying Down Trends in Gold Trading

What Defines a Down Trend? Spotting Declines in Gold Trades.

A downward trend occurs when price makes series of lower highs & lower lows. Each gold price high is lower and lesser than prior price high - lower high: LH, & each xauusd gold price low is lower than prior price low - lower low: LL therefore displaying bearish xauusd gold price movement.

In gold's downtrend, lines hold strength each time price hits but bounces off. The down move lasts until highs and lows break higher.

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