Define: Downtrend

UK 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.


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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.


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Examples of Downtrend in a sentence


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



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Downtrend. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/downtrend/ (accessed: February 21, 2020).
American Psychological Association (APA):
Downtrend. PayrollHeaven.com. Retrieved February 21, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/downtrend/

Definition Sources


Definitions for Downtrend are sourced/syndicated and enhanced from:

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

This glossary post was last updated: 9th February 2020.