Bullish Vs Bearish

 You probably heard the term ” Bullish Trend “ and  ” Bearish Trend “, Or  “Bullish Market” and “Bearish Market” especially when you read expert analysis or watching the reports about stocks and forex.

“The bulls market typically mean that prices of certain stocks or forex pairs are rising and the bears indicate the negative momentum or falling prices”.

The bulls are in control or the bears are in control, What does the meaning of these terms?We will discuss this in details below.

What Is A Bull Market

In order to define bullish. The Bullish market is the one in which sometimes the prices are rising or they are expected to be, the bull market is actually the expectations of the investors that the price will go up and will give them benefit.This enhances the confidence of the investors that this will sure give them a rise in bullish stock.

Keep in mind that whenever there is a rise in the market and you observe the characteristics that are mentioned above then you will hear from investors/Traders that it is the bullish market.

 

 

 Example Of Bullish

An easy example for the learners to understand is that consider the word “Bull “,  Whenever the bull attacks he typically attack upwards pattern or pick you “up”. Emphasize on the word up and relate it with the rise in the price in the stock market. The trend in the bullish market is the same it will raise and you will understand that it is a bull market.

 

How To Identify Bullish Stocks Or Bullish  Trend In Forex

In order to trade stocks or forex market, we need to spot the trend either it is bullish or bearish.The definition of bullish trend is already discussed above.Let me describe how to spot bullish trend or uptrend.

When the price of certain stock or forex pair rise in an upward formation and making “higher high” and “lower high“.This will be the indication of Uptrend or Bullish trend.

Please have a look at the chart below, I have mentioned the bullish trend formation with an example.

Bullish Trend Chart

What Is A Bear Market

In order to define Bearish, The term Bearish is basically used when prices are falling or there may be the negative momentum in the market.The bear market is basically the expectations of investors that the price will go down or the stocks and particular forex pairs are falling.

Keep in mind that whenever the prices are falling in the market and you observe the characteristics that are mentioned above then you will hear from investors/Traders that it is the bearish market.

Example Of Bearish

An easy example to make you understand the term properly is that consider the word “bear “. Now imagine that you are in front of a bear and he is ready to attack you. As soon as he attacks you he makes you fall because he is not able to pick you up on his head. His capacity is only to make you fall. This is a clear example that is totally opposite to a bull.

 

How To Identify Bearish Stocks Or Bearish  Trend In Forex

In order to trade stocks or forex market, we need to spot the trend either it is bullish or bearish.The definition of the bearish trend is already discussed above.Let me describe how to spot bearish trend or down trend.

When the price of certain stock or forex pair fall in a downward formation and making “higher low” and “lower low”.This will be the indication of a downward or bearish trend.

Please have a look at the chart below, I have mentioned the bullish trend formation with an example.

Bearish Trend Chart