🔥 How to easily calculate the downtrend and know when to exit the market? 🔥
In the trading world, trend is everything!
And the worst thing a trader can do is enter against the trend.
Today we will reveal the simplest way to identify the downtrend — without complications or many indicators.
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📉 First: What is the downtrend?
The downtrend means that the market is continuously declining,
Simply put: every new peak is lower than the previous peak,
And every new low is lower than the previous low.
👆 If you see this pattern on the chart, know that the market is in a down phase.
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⚙️ The quick way to determine the downtrend:
1. Open the chart of the currency pair (like $BTC usdt).
2. Use a 4-hour or daily timeframe (to make the picture clearer).
3. Draw a line connecting the descending peaks (Trend Line).
4. Every time the price touches the line and bounces down → the trend is still down.
📍 Important point: When the price breaks the trend line and closes above it,
This is where the initial signal for trend reversal begins or at least a corrective upward movement.
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💡 Smart trader's tip:
Don't rely solely on the trend line.
Combine it with confirming indicators such as:
• RSI: If it's below 50 → we are still in a downtrend.
• Moving Average 50 and 200: If the short is below the long → the decline continues.
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⚠️ Don't forget:
The trend is your friend… don’t fight it!
Enter with the direction, and take your profits calmly.
