A trend on currency exchanges is a price movement in a certain direction that lasts for a while. Absolutely every trader comes to the market and makes investments in order to buy cheaper and sell more expensive. Trends are the most common statistical movements for traders.
What is a bull market and a bear market? Initially, it seems that everything is simple: you see an uptrend - you open deals to buy (and vice versa with a downtrend). But it's a little different. In some cases, traders can work against generally accepted directions, keep negative trades longer than profitable ones, and expect price reversals where directions are clearly gaining momentum.
Bull Market
A bull market is a time when prices rise on the stock exchange. Essentially, this means that buyers hold the market, that is, there are more buyers in the market than sellers.
Most savers and private traders opt for bullish trends, as many fund managers, including pension portfolio managers, work only on long-term positions. This means that there are restrictions for them when acquiring assets whose price tends to increase. This is one of the few reasons affecting the duration of the bullish direction in the market.
Bear Market
A bearish trend is a time period when the price of assets is constantly declining. The name is not just associated with bears: these animals knock the prey off its feet and tear it into several parts. Also do traders-"bears", who open deals to lower prices.
No one can predict how much assets will decline in value and how long the fall may occur. We can talk about the "bearish trend" already when the cost decreases by 20% in relation to the highest value on the market in the coming days, and this phenomenon occurs within two months.
If you are new to the market and do not know where to start and what strategies to choose – choose trend tracking. No need to reinvent the wheel. There are many statistical studies showing that trend tracking is an excellent basis for profitable trading concepts and new techniques. All that is required is to use these techniques in practice.