Bull and bear forex indicator

While dealing with Forex indicators, you often hear the words Bull and Bear. These are nothing but two types of markets. There are two types of markets that behave differently. Of course, for a trader each has its own use. Both have good potential. All you need to do is make their proper use. As a trader making sure that you know their unique features is very important. That will help you draw good use of them. Also understanding what market you’re in helps you to make proper decisions. Thus it is important you know about Bull and Bear Forex indicator.

Bull market:

Now a Bull market means price trends are generally going upwards. In other words, there is upwards trending. So traders are buying a currency. And of course, you have indicators for a Bull market. Again, a Bear market is one in which price is going down. That means people are quickly selling it. It denotes a downtrend. 

So it’s easy to see that you need different approaches for the different markets. It is rather different market conditions than markets. In any case, firstly there are Bull indicators.

These are indicators actually help you define the market. Some very useful Bull indicators are:

•    Moving average

•    Volume

•    Advances and decline

•    Momentum indicators

•    Support areas

•    Resistance areas

These are the indicators that show you trends that are on the upward slope. Prices generally remain the average main MAs. The main MAs include 50 day MA, 100 days MA and 200 days MA. Moreover, short terms ones are always ahead of long term ones. That’s how these indicators help you define a Bull market. In such ways, you need to keep up with a Bull and Bear Forex indicator works. 

Bear market:

Again, there are indicators for a Bear market. Now what one needs to understand that there are some common indicators. What that tells us that it’s the behaviour of Bulls and Bears Forex indicator that shows how a market is doing. So an indicator’s behaviour may tell you about market conditions. But there are some useful Bear indicators. These are:

1.    Lines of advance and decline

2.    Price trend

3.    Transportation average (this has its origin in stock market)

These indicators tell you whether it is a Bear market or not. Now even a moving average’s behaviour can tell you whether this market is trending up or down. For example, if a 200 period MA is going from an upper left to lower right, there is a down trend. Then there is the speed of change of direction too. These are the things that make it easier to know about a market.

Know about Bull and Bear Forex indicator:

Therefore it is up to the trader to use indicators. His use of Bull and Bear Forex indicator will tell him what condition market is in. Once he does know, he can trade accordingly. Most of the times this is all one needs to know before taking a position. So you better know about them too.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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