A downtrend is when a security makes ______ lows and ______ highs.

A. lower; higher
B. lower; lower
C. higher; lower

Correct Answer: B

In technical analysis, it is the movement of the highs and lows that constitutes a trend. For example, an uptrend is classified as a series of higher highs and higher lows, while a downtrend is one of lower lows and lower highs.