As you now know there are 3 types of trends in modern trading. They are the bullish, bearish, and sideways trends. This lesson focuses on the first trend type and its features. A bull trend is also known as an uptrend as the price is moving up. Let’s now give a broader definition of this trend.
A bull trend is a market state when the price shows prolonged, steady, and clear growth amid high demand and low supply.
Bulls are market players who buy an asset, thus driving prices up. Accordingly, a bull market occurs when prices go up.
The uptrend is a time when bulls are stronger than their counterparts, bears, who profit from a decline in the price of an asset (we will discuss this term in our next lesson). Trading volumes in this case measure power. Whoever has more power dominates the market. Therefore, traders should always monitor the buy/sell ratio as it helps to identify a trend.
The period between 1982 and 2000 is the most striking example of a bull market in US history. It began after prolonged stagflation and lasted until the dot-com collapse. The Dow Jones Industrial Average posted an average annual gain of 17% during those 18 years.
The uptrend can be easily determined with the help of a chart. It is characterized by higher lows and higher highs. In other words, each new maximum and minimum is higher than the previous one.
he easiest way to identify a trend is to draw a trendline. For the uptrend, the trendline is drawn by 2 points: the very first low and the one next to it. This is support for the bull trend, while resistance is the line running parallel to it.
The Moving Average indicator (MA) can also be applied to determine a trend. It is the uptrend when the price is above this indicator. Otherwise, it is the downtrend.
Apart from technical analysis, traders use fundamental analysis to find the uptrend. Crypto traders use news to help their strategic decisions. They are guided by a simple pattern: positive news and strong public sentiment in favor of an asset indicate a period of long-term growth, that is, a bull trend.
Unlike the bear trend, the bull trend is considered to be optimistic because of the high-profit expectations that come with it.
Still, this is typical of the stock and commodity markets only. On Forex, the bull trend cannot be called objectively optimistic because an increase in the price of one currency entails an inevitable decrease in the value of another.
Therefore, Forex traders should always be guided by the following factors when trading:
Whenever there is an uptrend, a base currency is always on the rise.
Meanwhile, a quote currency always goes down.
Here is an example: bullish EUR/USD means that the euro is strengthening, while the greenback is, on the contrary, getting weaker.
A bull trend is a market state when the price shows prolonged, steady, and clear growth amid high demand and low supply.
Bulls are market players who buy an asset, thus driving prices up. Accordingly, a bull market occurs when prices go up.
The uptrend is a time when bulls are stronger than their counterparts, bears, who profit from a decline in the price of an asset (we will discuss this term in our next lesson). Trading volumes in this case measure power. Whoever has more power dominates the market. Therefore, traders should always monitor the buy/sell ratio as it helps to identify a trend.
The period between 1982 and 2000 is the most striking example of a bull market in US history. It began after prolonged stagflation and lasted until the dot-com collapse. The Dow Jones Industrial Average posted an average annual gain of 17% during those 18 years.
The uptrend can be easily determined with the help of a chart. It is characterized by higher lows and higher highs. In other words, each new maximum and minimum is higher than the previous one.
he easiest way to identify a trend is to draw a trendline. For the uptrend, the trendline is drawn by 2 points: the very first low and the one next to it. This is support for the bull trend, while resistance is the line running parallel to it.
The Moving Average indicator (MA) can also be applied to determine a trend. It is the uptrend when the price is above this indicator. Otherwise, it is the downtrend.
Apart from technical analysis, traders use fundamental analysis to find the uptrend. Crypto traders use news to help their strategic decisions. They are guided by a simple pattern: positive news and strong public sentiment in favor of an asset indicate a period of long-term growth, that is, a bull trend.
Unlike the bear trend, the bull trend is considered to be optimistic because of the high-profit expectations that come with it.
Still, this is typical of the stock and commodity markets only. On Forex, the bull trend cannot be called objectively optimistic because an increase in the price of one currency entails an inevitable decrease in the value of another.
Therefore, Forex traders should always be guided by the following factors when trading:
Whenever there is an uptrend, a base currency is always on the rise.
Meanwhile, a quote currency always goes down.
Here is an example: bullish EUR/USD means that the euro is strengthening, while the greenback is, on the contrary, getting weaker.
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