A downtrend in trading is the opposite of an uptrend. It refers to the overall direction in which the price of an asset is moving, characterized by lower highs and lower lows. In a downtrend, the asset's value consistently decreases over a period of time, indicating a negative market sentiment and declining demand for the asset. Traders often look for downtrends to identify potential selling opportunities or to avoid entering new long positions, as they suggest a bearish market trend. Similar to uptrends, traders use various technical analysis tools to identify and confirm downtrends in trading charts.