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