You identify a bearish trend by spotting a sustained sequence of lower highs and lower lows on the chart, with price trading below downward-sloping moving averages like the 50 or 200 SMA. Volume rising on declines and shrinking on rallies confirms sellers are in control. A "death cross" (50 SMA crossing below the 200 SMA), broken support levels, and bearish chart patterns like descending triangles, head and shoulders, or rising wedges add weight to the read. Higher timeframes such as the daily and weekly give the cleanest signal because they filter intraday noise and reflect institutional positioning.
How to identify a bearish trend?
LearnApr 30, 2026
Timothy Cahill
by Timothy Cahill
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1 min read
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