The downward trend is a bearish dance in the market

When I analyze market movements, the downtrend always evokes mixed feelings in me. On one hand, it is a signal of weakness; on the other hand, it is an opportunity to profit if one can correctly identify and leverage the situation.

The 下行 trend is when the price of an asset persistently moves downwards, like a bear heavily descending a mountain. It is characterized by a sequence of increasingly lower highs and lows. At such moments, I feel how sellers take control of the market, while buyers are simply unable to stop the decline.

Damn it, every time I watch the formation of a медвежий тренд, I can't help but feel how the market ruthlessly takes my money! But it is precisely the understanding of this process that allows me to preserve my capital and even profit from the fall.

How do I determine a downtrend? It's quite simple — I look at the charts and search for a "staircase down". Each new peak is lower than the previous one, and each bottom is deeper than the previous one. This indicates that the bears are fully in control of the situation, and I either look for short position opportunities or wait for a trend reversal.

The most obvious signs of the end of the 下行 trend for me:

• Breakthrough of the downtrend line
• Formation of an ascending pivot
• Noticeable increase in purchase volume
• The emergence of reversal patterns

But be careful! Many traders lose money trying to catch the bottom. I have learned from my own experience that it is better to wait for clear reversal signals than to try to guess the lowest point.

Often, what looks like a reversal on a lower timeframe turns out to be just a correction within a global 下行 trend. Therefore, I always analyze multiple timeframes before making a trading decision.

Ultimately, the 下行 trend is just as integral a part of the market as the upward trend. And my most profitable trades often come from understanding when it's time to sell and when to buy on the reversal.