LESSON 08 ~9 MIN · AT YOUR OWN PACE

Trends and market direction

Spot an Uptrend, a Downtrend and Sideways on a chart.

STEP 2 OF 4

Downtrend

In a Downtrend, Highs and Lows usually keep moving down. Price may turn up for a while and then go down again.

AN EXAMPLE

Highs 112, 108, 104; Lows 106, 102, 98. Choose Downtrend in the chart below.

RememberOne green candle does not change a whole Downtrend.

Sources and further reading

Sources in English · Content reviewed on 28 September 2026. We made the examples for learning; they are not broker recommendations.

Fidelity · Charts and trends (opens in a new tab)Charles Schwab · Swing trading (opens in a new tab)