What does bullish and bearish mean in forex?

[PIPruit]

Let's go to the basics. I am looking for the best explanation of what bullish and bearish mean in forex, please.

 

[Danik001]

In Forex trading, bullish and bearish are terms used to describe the market sentiment and the direction in which prices are expected to move.

 

[Anas101Siddiqui]

Sure, I'd be delighted to assist!

When it comes to forex trading, you'll frequently hear people discuss whether they're bullish or bearish. These terminologies may appear complex at first, but they are actually rather straightforward once you get the hang of them.


In a word, being bullish means that you are optimistic about a specific currency pair and feel that its value will rise over time. This could be because you believe the economy is performing well or that other factors are going to push the currency upward.

Being bearish, on the other side, implies that you are pessimistic about a currency pair and believe that its value will fall. You may have a pessimistic view of the economy or believe that other factors will cause the currency to fall.

These phrases are derived from the stock market, where a bull is perceived to be strong and rushing forward, whereas a bear is perceived to be lethargic and going slowly. The same concepts apply to forex trading, where being bullish implies being confident and pushing forward while being bearish means being cautious and moving slowly.

It's important to note that these terminologies can be a little subjective. What one person considers to be bullish may be considered negative by another, depending on their outlook and interpretation. So, before making any trades, always conduct your own research and analysis.

Understanding the difference between bullish and bearish will help you make more informed FX trade selections. So remember these terms the next time you consider purchasing or selling a currency pair!

 

[ImogenBeaumont]

When the market makes a bullish move, this means it is moving upwards, and when it makes a bearish move, this means it is moving downwards. Bulls are usually people who have bought a certain currency pair or financial instrument (or those who expect it to go up), and bears are those who sold the instrument or expect it to go down.

The names come from the typical movements of a bull and a bear. A bull usually butts up his opponent whereas a bear smacks his victim down. In the same sense, bulls want to take the price up, and bears want to take the price down. The price eventually moves in the direction of the strongest of either one of those two sides.

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When talking about markets, a bull market is a market that is predominantly controlled by bulls, and a bearish market is a market where the bears are prevailing. One example of a bull market is the long trend up that lasted for more than ten years in the S&P500 after the financial crisis of 2008. An example of a bear market is the one that followed when stocks declined sharply because of the lockdowns in many economies due to the COVID-19 pandemic.

What a thorough and useful explanation. Thank you.

 

[Komondar]

"Did you hear about the bullish and bearish duo who opened a forex trading zoo? They had a bull exhibit for the optimistic traders and a bear exhibit for the cautious ones. The bears were always seen taking naps, while the bulls were charging around with excitement. It was quite a sight to behold! Remember, though, in the forex market, it's important to stay informed and not rely solely on the zoo's animal antics for your trading decisions!"

 

[ArnavDeshmukh]

When the market makes a bullish move, this means it is moving upwards, and when it makes a bearish move, this means it is moving downwards. Bulls are usually people who have bought a certain currency pair or financial instrument (or those who expect it to go up), and bears are those who sold the instrument or expect it to go down.

The names come from the typical movements of a bull and a bear. A bull usually butts up his opponent whereas a bear smacks his victim down. In the same sense, bulls want to take the price up, and bears want to take the price down. The price eventually moves in the direction of the strongest of either one of those two sides.

View attachment 53993

When talking about markets, a bull market is a market that is predominantly controlled by bulls, and a bearish market is a market where the bears are prevailing. One example of a bull market is the long trend up that lasted for more than ten years in the S&P500 after the financial crisis of 2008. An example of a bear market is the one that followed when stocks declined sharply because of the lockdowns in many economies due to the COVID-19 pandemic.

Thank you for the complete explanation. The questions and answers part of this forum is very informative.

 

[Juanstevenson19]

In forex, being bullish means expecting prices to go up, while being bearish means expecting prices to go down. It's as simple as that.

 

[CallahanSinclair]

Let's go to the basics. I am looking for the best explanation of what bullish and bearish mean in forex, please.

Why do we say bullish during an upward movement and bearish during a downward movement?

 

[Komondar]

Why do we say bullish during an upward movement and bearish during a downward movement?

"Bullish" means a positive outlook with rising prices, likened to a bull thrusting upward. "Bearish" means a negative outlook with falling prices, like a bear swiping downward. These terms simplify communication

 

[ImogenBeaumont]

Why do we say bullish during an upward movement and bearish during a downward movement?

These terms are derived from the behaviors of two animals, bulls, and bears, which symbolize different market conditions.

 

[Etedus12]

This is actually one of the first things you learn when you start forex trading. I remember when I first heard the terms they sounded weird. Anyways, when the market is moving upward that is a bullish move whereas, when it's moving downwards that's bearish.