Definition of bull & bear

The bull and the bear are metaphorical for rising or falling prices. Since the bull attacks with his horns from the bottom up, he is the symbol for rising prices. In this context one speaks of a online trading Canada , also called a bull market . Investors who expect prices to rise are also referred to as bulls.

It is the opposite with the bear. Anyone expecting falling prices is dubbed a bear. The bear attacks with its paws from top to bottom and therefore stands for falling prices. A bearish market is also known as a bear market . The terms bull and bear are often used in relation to the entire market, but can also describe industries, regions or areas such as individual raw materials.

We speak of a bull or bear Forex trading when prices rise or fall over a long period of time. However, in such phases it is normal that the price development is repeatedly subject to smaller counter movements, the so-called corrections . However, these phases are significantly weaker than the actual trend of the market.

There is also a special expression for the intensified phase of a bull market, i.e. when prices rise more strongly than usual. In such a case, one speaks of a rally . An extended period of sharply rising rates will boom called –  a prolonged period of plummeting prices  crash.

Forex trading

Meanwhile, there is still a special circumstance for online trading South Africa, as currencies are always traded as pairs . For example, if there is a bearish trend for the EUR / USD currency pair, this means that the euro is depreciating against the US dollar. This obviously goes hand in hand with the US dollar rising, so there is a bullish trend here . In contrast to other financial products, with foreign exchange, trends can exist in both directions, depending on which currency is the base currency and which is the quote currency.

Incidentally, the symbols bull and bear stand as statues near important stock exchanges and are well-known tourist destinations. In Frankfurt, bull and bear face each other on the forecourt. The world-famous “Charging Bull” by Arturo di Modica can also be found in the financial district of Manhattan. In addition, bulls by the same artist were also set up in Amsterdam and Shanghai.

Recognition of the phases / technical analysis

Technical analysis can be used to find out whether it is a bullish or bearish trend. This is very important for market participants to be able to make the right trading decisions. Even beginners can discover these trends in aussie Forex and draw the right conclusions from them.

You can take advantage of both phases. On the stock market , it is not only possible to make profits with rising prices, but also to benefit from a bearish phase. This also applies to currency trading.