Downtrend

A downtrend is a sustained decrease in an asset's price characterized by a series of lower highs and lower lows on a chart. In a downtrend, selling pressure dominates as each rally fails to exceed the previous peak and each decline sets a new low. Downtrends can last from days to years depending on the timeframe, and traders typically look for short-selling or put-buying opportunities while avoiding long positions until the trend structure breaks.