when the trend turns down traders focus more on selling or shorting attempting to minimize losses or profit from the price decline most not all downtrends do reverse at some point so as the price continues to decline more traders begin to see the price as a bargain and step in to buy this could lead to the emergence of an uptrend again 
trends may also be used by investors focused on fundamental analysis this form of analysis looks at changes in revenue earnings or other business or economic metrics for example fundamental analysts may look for trends in earnings per share and revenue growth if earnings have grown for the past four quarters this represents a positive trend however if earnings have declined for the past four quarters it represents a negative trend the lack of a trend that is a period of time where there is little overall upward or downward progress is called a range or trendless period using trendlinesa common way to identify trends is using trendlines which connect a series of highs downtrend or lows uptrend uptrends connect a series of higher lows creating a support level for future price movements downtrends connect a series of lower highs creating a resistance level for future price movements in addition to support and resistance these trendlines show the overall direction of the trend 1while trendlines do a good job of showing overall direction they will often need to be redrawn for example during an uptrend the price may fall below the trendline yet this doesn t necessarily mean the trend is over the price may move below the trendline and then continue rising in such an event the trendline may need to be redrawn to reflect the new price action trendlines should not be relied on exclusively to determine the trend most professionals also tend to look at price action and other technical indicators to help determine if a trend is ending or not in the example above a drop below the trendline isn t necessarily a sell signal but if the price also drops below a prior swing low and or technical indicators are turning bearish then it might be example of a trend and trendlinethe following chart shows a rising trendline along with an rsi reading that suggests a strong trend while the price is oscillating the overall progress is to the upside the rising trend begins to lose momentum and selling pressure kicks in the rsi falls below 70 followed by a very large down candle that takes the price to the trendline the move lower was confirmed the next day when the price gapped below the trendline these signals could have been used to exit long positions as there was evidence that the trend was turning short trades could have also been initiated image by sabrina jiang investopedia 2021as the price moves lower it starts to attract buyers interested in the lower price another trendline not shown could also be drawn along the falling price to indicate when a bounce may be coming that trendline would be have been penetrated near the middle of february as the price made a quick v bottom and progressed higher 