Often times we see a bear and a bull on a fighting stance depicted on different online brokers or near financial centers. The famous charging bull, known as the Wall Street Bull, in Manhattan, New York City is one of those remarkable peace of art. There is also a bear and a bull in front of the Frankfurt Stock Exchange in Germany.
Newbies, especially those who do not have a business background, often wonder what are those really for or what does it symbolized. I for one had also gone that stage.
These symbolic beast represent the direction of the trend in the market.
We spend our time monitoring the trend and we could observe that the movement trend may go up or down. An uptrend is called Bullish and a downtrend is called Bearish. The uptrend is characterized by higher highs and higher lows while a downtrend are lower highs and lower lows.
The Bull market trend is associated with the increased in the investor's confidence and increased in anticipation of future price increases or capital gains.
The Bear market trend shows the opposite. The investor's pessimism is widespread and a decline in the market is visible and inevitable.
In case there is no movement in a direction, it is called Flat.
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