A downtrend line is a straight line drawn downward to the right that connects 2 or more high points. The second high must be lower than the first for the line to have a downward incline. Downtrend lines act as resistance and indicate that there is more supply than demand, even as the price falls. As long as prices remain below the trend line, the downtrend is considered to be intact. A break above the downtrend line indicates that a change in trend may be occurring.