What is an Examples of a Oil Down Trend? Identifying Down Trends in Oil
A downwards oil trend in oil is the tendency of crude oil prices to move in a downwards direction for a period of time in a general direction downwards.
Down Trends can be analyzed using downwards oil trend lines.
Downward oil trend line analysis helps traders to define the downward direction of the crude oil trading market. Down oil trend lines connect a series of crude crude oil price highs forming a sloping oil trend which represents the general downwards movement of the crude oil price.
For a downwards sloping line this is known as an down oil trend - oil trend line drawn is known as an downwards oil trend line.
Downwards Oil Trend Line
A downwards oil trendline is drawn above pattern formed by consecutive lower highs, it must connect at least two highs, with the most recent high being lower.
Since crude crude oil price moves downward in a zigzag manner traders normally draw a line which shows the general downward direction. In oil trading market technical analysis, this general direction is referred to as the Oil TREND by crude oil traders. This down oil trend-line is drawn on Oil chart showing the resistance levels (bearish oil trend market direction).
What's an Example of a Oil Down Trend? Identifying Downward Trends in Crude Oil Trading - Oil Down Trend Definition
A oil down trend occurs when the crude crude crude oil price forms series of lower highs and lower lows. Each crude crude oil price high is lower than the previous crude crude oil price high – lower high, & each crude crude oil price low is lower than the previous crude crude oil price low – lower low therefore showing bearish crude crude oil price movement.
Oil down oil trend lines gain more validity each time crude crude oil price touches but does not penetrate the oil trend line. A down oil trend remains the general direction until this series of lower crude crude oil price highs and lower crude crude oil price lows is broken - oil trend line break reversal oil signal.
