A downtrend occurs when a price has been moving downward for some time. The opposite of a downtrend is an uptrend, where the price has actually been moving up for some time.

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A downtrend is characterized by lower tops and lower bottoms. This pattern can last a week or much longer. A downtrend continues as long as the downtrend is not broken.

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The direction of the price is down which means there is selling power. Even though there may be intermediate upward movements, the overall direction is down. Sellers (also known as Bears) are in the majority and with every small move up they start selling again to keep the trend down.