Bull/Bear Market Explained
As an avid trader or a simple observer of financial markets you have often encountered the term bullish or bearish market, and markets are often described as bullish or bearish. But what exactly does it mean when analysts announce that the market will be bullish, or warn that the market trend is bearish? Understanding the bullish vs bearish markets is important for the trader to navigate the different market conditions and see their various effects.
Bullish vs Bearish Explained
Experts in the
financial sector often refer to markets as bullish or bearish based on
price movements that are either positive or negative. And when analysts
throw the word “bear market” or “bull market” they describe whether the
market is optimistic (going up or may rise) or hopeless (going down or
possibly down). The main difference between bullish and bearish markets
is that confidence is high and prices are rising or low and prices are
falling.
Specifically, the words bullish and bearish describe the real market situation – if it gains value, or “uptrend,” or loses value in “downtrend.” These methods are often affected and reflect the feelings of the sellers and whether they are buying or selling. Market prices and commodities often rise in the middle of the good news and fall when there is a bad distribution. Sometimes certain groups may try to influence prices, but in a large market like forex this does not happen.
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