A downtrend is when something keeps going lower and lower over time, like a slide you keep sliding down.
Imagine you have a big jar full of your favorite candy, let's say 100 pieces. Every day, you take out 5 candies to share with your friends. After one week, you’ll only have 65 candies left. That’s a downtrend, the number of candies is going down each day.
Like a Staircase Going Down
Think about walking down a staircase. Each step you take brings you lower than before. A downtrend is like that staircase, it keeps getting lower and lower, one step at a time.
You can see downtrends in many places:
- Your piggy bank money when you keep buying toys.
- The temperature outside when winter comes.
- A toy that gets broken little by little until it doesn’t work anymore.
So next time you notice something slowly going down, like your favorite snack, or the number of cookies on a plate, you’ll know it’s in a downtrend!
Examples
- A company loses money every year for several years.
- The price of a favorite toy keeps getting cheaper each month.
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See also
- How Does Ray Dalio's the Big Cycle Explained in 3 Minutes Work?
- How Does Episode 1: How To Confirm An Uptrend Or Downtrend Work?
- How The Economic Machine Works by Ray Dalio?
- What are global economic cycles?
- What are current research trends?