What does the Bull Market and the Bear Market Mean in the Stock Market?

Copy Reading: What does the Bull Market and the Bear Market Mean in the Stock Market?

Bull and Bear are terms often used and heard in while trading or investing inequities.

What does the Bull Market and the Bear Market Mean in the Stock Market? - IndiaCopy
Bull Market and Bear Market Source : PIXABAY

A Bull Market is a market that is on the rise and is economically sound, while a bear market is a market that is receding, where most stocks are declining in value.

A bull market exists when the market sentiments are extremely positive and investors are also in confidence. In this phase, investors buy heavily and also get great returns on investments.

BULL MARKET is said to occur when share prices are projected to rise and its index is also projected to rise. This is the time when the economy of the country is running well, GDP is rising, and the unemployment level is low due to which the share prices and index are expected to rise and it arouses confidence in investors That the share prices will increase. That is, when there is a buying trend in stocks and there is an increase in its index, it is called a bull market, and in the language of the stock market, stock buyers are called bulls.

Bear market trends are exactly opposite to those of the bull market. It involves heavy selling from domestic, retail, as well as big institutional players, because of a fear of a bigger downfall in the stock values in the days to come.

A BEAR MARKET starts when sellers become more effective than buyers, also known as a BEARISH trend. When the price of shares continues to fall due to prolonged selling in the market, it is called BEAR MARKET or Bearish.

It is a state when the economy of the country is not doing very well, unemployment is very high, the level of GDP is declining, due to the government's policy of controlling prices and changes in the government's economic and industrial policy. Etc. In this month, investors sell instead of buying shares.

Why did BULLS and BEARS have such a name?

The terms "bear" and "bull" are thought to derive from the way in which each animal attacks its opponents.

Bulls, that is, an animal, and the bull has a basic NATURE, that the bull always raises its prey upside down, Similarly, when a stock suddenly moves below the stock market, it is considered as the movement of BULLS, and the market is called BULLISH,

BEARS means Bear which is an animal, and bears have a basic NATURE, that the bear always declines its prey from top to bottom, Similarly, when a stock starts falling downwards in the stock market, it is considered to be the movement of BEARS, and the market is called BEARISH,

Identification of BULLS and BEARS

In the candlestick chart pattern, all the candles can be divided into two parts.

BULLISH  - Which we identify by GREEN or BLUE,
BEARISH -  Which we identify by RED CANDLE,

The market will be considered as BULLISH, if it closes above its previous day's close price.
The market will be considered BEARISH , if it closes below its previous day close price.

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