The perception of a long-term upward movement in the financial markets is known as a trend.
Traders try to spot market trends using technical analysis, a framework that defines market trends as predictable price tendencies within the market when price reaches support and resistance levels that change over time.
A bear market is a perceived downward economic trend in the markets over an extended period of time. For very long term periods, these patterns are typically categorized as bearish, for short term intervals as primary, and for long term durations as moderated. This kind of market may persist for a week, two months, or longer. Bear markets result in lower stock prices but typically give chances to purchase equities at deep discounts.
Investors may remove their funds from a bear market and hold onto them until the trend reverses, further driving prices down, because it is difficult to predict when a market will bottom.
A sustained period during which the prices of securities or other assets keep rising is referred to as a "bull market." When prices are growing as a result of rising investor confidence, a thriving economy, and low unemployment, a market is said to be rising. A bull market is fueled and expands as a result of investors' eagerness to purchase and retain securities.
A bull market doesn't just apply to stock markets, either. Additionally, it can be used to characterize price changes in markets that are heavily influenced by consumer confidence, such as bonds, commodities like gold or oil, foreign currencies, real estate, or other asset classes. any that experience economic cycles and have the potential to increase or decrease in value over time.
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