In the example chart below, we can see
examples of a downtrend, an uptrend and an uptrend changing to a downtrend:
In the example chart below, we can see
examples of a downtrend, an uptrend and an uptrend changing to a downtrend:
Not exact matches
We can see an
example of this in the chart below with the fakey trading strategy protruding up past the resistance level in the
downtrend.
For
example, now that the broad market is in a confirmed
downtrend (at least two «lower highs» and «lower lows» have been set), we are NOT interested in going long (buying) counter-trend bounces into resistance
of downtrending stocks.
We can see an
example of this in the chart below with the fakey trading strategy protruding up past the resistance level in the
downtrend.
For
example, if this same pin bar setup above occurred in a range - bound market or in the course
of a
downtrend, you would not likely set a target
of more than 1 to 2; therefore the trade would be a lower probability setup.
In the
example below, we can see a long - tailed pin bar that occurred within the context
of a
downtrend in the EURJPY.
Here's an
example of a false - break in the EURUSD daily chart that led to a top in the market and started a long - term
downtrend:
For
example, SPDR EURO STOXX 50 (FEZ) illustrates the doggedness
of the
downtrend in Europe.