Business, Legal & Accounting Glossary

Definition: Downtrend

Quick Summary of Downtrend

A downward trend, tendency, or movement.

What is the dictionary definition of Downtrend?

Dictionary Definition

Any gradual movement towards a lower state or value.

Full Definition of Downtrend

A downtrend refers to declining prices. A downtrend can apply to a single equity issue or to a sector or to the market as a whole. A downtrend can be short term — intra-day or daily — or a downtrend can be longer-term, based on weekly, monthly or yearly analysis. For some investors, a succession of lower closing prices determines a downtrend. For other investors, a downtrend is defined by a succession of lower lows in a stock’s trading range and/or a succession of lower highs. A prolonged downtrend in the overall market is referred to as a bear market. An extremely severe and long-lasting downturn in the market may be classified as a recession. The opposite of a downtrend is an up-trend.

Examples of Downtrend in a sentence

The stock market took a long time to recover from the downtrend.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Downtrend. Payroll & Accounting Heaven Ltd. September 22, 2021
Chicago Manual of Style (CMS):
Downtrend. Payroll & Accounting Heaven Ltd. (accessed: September 22, 2021).
American Psychological Association (APA):
Downtrend. Retrieved September 22, 2021, from website:

Definition Sources

Definitions for Downtrend are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th February, 2020 | 3 Views.