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

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

Down Trends can be analyzed using downwards gold trend lines.

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

For a downwards sloping line this is known as an down gold trend - the trend-line plotted is known as an downwards gold trend line.

Downwards XAUUSD Trend Line

A downwards gold trendline is drawn above pattern formed by consecutive lower highs, it must connect at least 2 highs, with the most recent high being lower.

Since xauusd price moves downward in a zigzag manner traders normally draw a line which shows the general downwards direction. In gold market technical analysis, this general direction is referred to as the Gold Trading TREND by traders. This down gold trend-line is drawn on a Gold chart showing the resistance levels (bearish gold trend market direction).

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

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

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