In this video, we are going to talk about the terms “Bull Market” and “Bear Market”.
If you have watched any financial TVs or read any financial articles, you may have heard these terms, and basically a Bull Market means that the market is optimistic and prices are going up, while a Bear Market means that prices are dropping and the market is pessimistic.
Even though no one can say for sure how and when traders start to use these terms, one explanation came from the way each animal attacks its opponents. A bear usually swipe down with his claws, which signify a down market, and a bull thrusts its horns up into the air, which correspond to an up market…
In order to call the market Bull or Bullish, it usually requires the prices have been gaining for a period of a few months… Bullish or Bearish could be used to describe a single instrument, a whole sector, or the whole market. Usually when the market is Bullish, it is better to buy and when the market is Bearish, it is better to SELL.
In Forex fundamental analysis, we look at the individual currency, such as USD, EUR, or CAD to determine their respective directions. Since Forex is traded in pairs, when you combine a bearish currency with a bullish currency, you can expect higher probability of return on your trade.
If you like this tutorial, please watch the video and leave your comments below and don’t forget to check out our other videos on the Forex Terminologies series.