As we can clearly see in the chart below the index of the Greek stock exchange has already formed three consecutive lower highs and lower lows (we need at least two in order to define a downtrend). This is a high probability indication that the index will be in a short term downtrend. Under these circumstances and in the context of a downtrend we must not thinking of opening of a long position. In order to do that we must spot a new uptrend and enter a long trade near the trendline after confirmation from a candlestick pattern or alternatively when the price visits a strong support level (about 1000-1050 in the chart) and after again the formation of a candlestick pattern.

 

downtrend, Greek stocks, trading signal