
The commonly held belief about the origin of these terms suggests that the use of “bull” and “bear” to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air, while a bear swipes its paws downward. These actions are metaphors for the movement of a market. If the trend is up, it’s a bull market. If the trend is down, it’s a bear market
The actual origin of the term “bull” is subject to debate. The terms “bear” (for down markets) and “bull” (for up markets) are thought by some to derive from the way in which each animal attacks its opponents. That is, a bull will thrust its horns up into the air, while a bear will swipe down. These actions were then related metaphorically to the movement of a market. If the trend was up, it was considered a bull market. If the trend was down, it was a bear market.
• Although some investors can be “bearish,” the majority of investors are typically “bullish.” The stock market, as a whole, has tended to post positive returns over long time horizons.
• A bear market can be more dangerous to invest in, as many equities lose value and prices become volatile.
• Since it is hard to time a market bottom, investors may withdraw their money from a bear market and sit on cash until the trend reverses, further sending prices lower.
The opposite of a bull market is a bear market, which is characterized by falling prices and typically shrouded in pessimism.
bull market, in securities and commodities trading, a rising market. A bull is an investor who expects prices to rise and, on this assumption, purchases a security or commodity in hopes of reselling it later for a profit. A bullish market is one in which prices are generally expected to rise .A bull market is a period of time in financial markets when the price of an asset or security rises continuously
Range bound market
• A range-bound trading strategy refers to a method in which traders buy at the support trendline and sell at the resistance trendline level for a given stock or option.
• Traders place stop-loss points just above the upper and lower trendlines to avoid having heavy losses from high-volume breakouts.
• Typically, traders use range-bound trading in conjunction with other indicators, such as volume, in order to increase their odds of success.