Bulls and Bears, you may have heard about these two animals names in your school days but have you heard them in the economy world? Economies are measured in terms of these two animals or say the trends of economies are based on bulls and bears.
Many Beginner’s and newbie’s who enters into stock market or have some interest in the stock market must have heard about bulls and bears of stock market but if you have came here to learn that what actually they are then you are at right place, we will be now discussing about bulls and bears of stock market.
India’s BSE SENSEX was in Bull Trend for 5 Years (April,2003 to January,2008) from 2,900 to 21,000.
What are Bulls? or Bullish Markets?
Bulls are a very strong and muscular male animal which has it’s same resemblance in stock market as in stock market when the markets or economies are growing up then we say that markets are very strong hence, this strong market are also concluded as the bulls market or bullish market this can also be presented or communicated like bulls are in the market.
According to traders views bulls are always referred as buyers in the bullish market it can also be said that buyers are in the market or bulls are strong or even that buyers or bulls have control over the market.
What are Bears? or Bearish Markets?
Bears are a mammals which are comparatively weak against the bulls, so therefore we can conclude here that bears are opposite of bulls, so if bulls meant the growing of economies and stock market then bears means the falling of economies and stock markets.
According to traders terminology bears are the sellers of the markets or bears/sellers have taken control over the falling market, if markets are consistently falling then it is also said that the market is in bearish trend or market is bearish.
Bulls and Bears are important part of trading terminology in the stock market, these concepts are also a part of the stock market as per knowledge base, so the one who want’s to enter into stock market business must have some basic knowledge about the stock markets.
Also Read: Market Trend Have 3 Phases – Dow Theory
In technical analysis bulls and bears are referred to the trends of markets as we have described above that the rising markets are tend to be a bullish trend and falling as bearish trend, so technical analysis basically is about predicting trends of the markets so these two trends are considered while analyzing markets.
Bulls and Bears are not just animals they are important and foremost trends of the stock market.