Market Regimes

Bearish Trend

Price makes lower lows and lower highs, indicating downward momentum

A bearish trend is characterized by consecutive lower lows and lower highs. This demonstrates that sellers are continually pushing prices to new lows and preventing significant rallies, signaling continued downward momentum.

✓How to Recognize

  • •Lower lows and lower highs
  • •Impulsive moves downward
  • •Pullbacks failing to reach previous highs
  • •Strong selling pressure on breakdowns