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A-Z of Bullish and Bearish Market:Stock Market Analysis


While we trade in the Stock market, we frequently come across these two

terms which are- Bullish and Bearish.

In this article, we will learn about the Bull market & Bear market.

Defining Bullish and Bearish:

Simply put, "bullish" means an investor believes a stock or the overall market

will go higher. Conversely, "bearish" is the term used for investors who believe

a stock will go down or underperform. A bullish investor is often referred to as

a bull and a bearish investor as a bear.

In this article we will look deep into how Bullish and Bearish terms play a role

in buyers’ and sellers’ sentiments.

What is Price Action- Definition and importance

What is Price action:

Price action is a method of analysing the basic price movements to generate

trade entry and exit signals that is considered reliable. It is the foundation for

all technical analysis and the data that is plotted graphically of a particular


Bullish- The usual notion that the market is bullish when buyers are

buying more stocks is wrong. It all depends on the sentiment of the


Bearish- The usual notion that the market is bearish when sellers are

selling more stocks is wrong. It all depends on the sentiment of the


What makes a market bullish or bearish:

The aggressiveness of buyers and sellers drives the Market sentiment.

Market sentiment refers to the overall attitude of investors toward a particular

security or financial market. It is the feeling or tone of a market, or its crowd

psychology, as revealed through the activity and price movement of the

securities traded in that market.

Characteristics of Bullish and Bearish markets:

● Bull markets tend to last for extended periods of time and are marked by

increased demand for securities, rising corporate profits and GDP, and

declining unemployment.

● Unstable and declining economy and a low business profitability drives

the market to become bearish.

In conclusion, in the article, we learned what are bearish and bullish markets,

what drives the markets, a little about buyers and sellers’ sentiments, what

price action is, what are the characteristics of bullish and bearish markets. We

also learned that bullish or bearish markets are caused due to the

aggressiveness or impulses of buyers or sellers. We also took note that Price

action refers to the pattern or character of how the price of a security or asset

changes. Negative investor sentiment leads to a bearish market whereas a

positive investor sentiment leads to a bullish market.

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