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