Bull and Bear Markets

The bull market is a market where traders buy a currency against another while the bear market is where traders sell a currency against another currency.

A bullish Forex market price structure signals strong buying momentum, higher highs, and higher lows, helping traders identify trend continuation, breakout opportunities, and profitable long positions.

The bearish Forex market price structure signals strong selling momentum, lower highs, and lower lows, helping traders identify trend continuation, breakout opportunities, and profitable short positions.

A market price that is going up can be described as a bullish market while the price that is falling can be described as a bearish market.

Generally, a trending market is either bullish or bearish in nature. Occasionally, the market price consolidates every now and then before either going bullish or bearish. Experienced traders are able to access the market trend before making their trades and this gives them an edge over the amateurs.

However, we have markets, that are ranging or consolidating especially when there is no trend or before a new trend develops.

A ranging Forex market price structure indicates consolidation, offering traders opportunities for range-bound strategies, support and resistance trading, and breakout anticipation for profitable entries.