Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 5 terms
A price structure of successively lower highs and lower lows.
Mechanical rather than aesthetic. Two analysts marking the same swing points should reach the same answer, which is exactly the point of defining it this way.
A straight line connecting successive swing lows in an uptrend or swing highs in a downtrend.
Two points make a line; three touches make it evidence. Steep ones break constantly.
The negative directional indicator — the share of recent price range attributable to downward movement, plotted alongside ADX.
When it sits above DI+, whatever strength ADX is reporting belongs to a downtrend. An ADX of 45 is equally consistent with a runaway rally and a violent crash.
A low oscillator reading, conventionally RSI below 30, indicating that recent moves have been strongly one-sided to the downside.
It describes momentum, not value. In a strong downtrend an oscillator can print oversold all the way down, and bounces top out near 55–60 rather than 70.
A continuation pattern: a long trend candle, then two to four small candles drifting back inside its range on lighter volume, then another long candle closing beyond the first one’s extreme.
The picture of a healthy pullback — shallow, unhurried and unsupported by volume, meaning nobody is willing to sell in size. The falling three methods is the same structure inside a downtrend.