Downward price movement of a security or the overall market over a period of time. Downtrends are usually reflective of growing or continuing negative sentiment on a security, an industry, or the economy. opposite of uptrend. |
For example, if the price of a stock is in a downtrend, it may be reflective of diminishing fundamentals for the company, the industry, or the economy. Likewise, a down-trending exchange rate for a currency may be reflective of declining economic outlook, growing political instability, or a dovish monetary policy.