What's 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 downwards commodity trend is defined by commodities trading 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 Downwards Commodities Trends
Commodities Trend is the commodity market tendency of commodities 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 downward.
This means commodities trading prices will close lower than where they opened.
Downwards Commodities Trend
A downwards commodity trendline is plotted above the downward commodity trend setup formed by consecutive lower highs, the downwards commodity trendline must connect at least 2 highs, with the most recent high being lower. For our down commodity trend examples we shall use the MT4 technical analysis software charts to illustrate example of the downward trend.
Since commodities trading price moves downward in a zigzag manner commodity traders normally draw a downward commodity trendline 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 trendline is plotted on a Commodities chart showing the resistance areas (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 trading price forms a series of lower highs & lower lows. Each price high is lower than the previous high - lower high, and each low is lower than the previous low - lower low therefore showing bearish commodities trading price commodity trend movement.
Down commodities trading trend commodity trend-lines gain more validity each time commodities price touches the downwards 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 sequence of lower highs and lower lows is broken - commodity trendline break.
