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Downtrend is the term used to describe a general state where the asset’s price rate is in decline. The technical analysis definition of a downtrend is a graph where every low peak is lower than the previous one and every high peak is lower than the previous one. There are different contexts to a downtrend. Day traders can call a 5 minute price decrease a downtrend and long term traders consider a downtrend only if it lasts for days or weeks. The opposite trend is called Uptrend which describes a continuous price increase.

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