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Bull and Bear Market in EUR/USD

Bull and Bear Market in EUR/USD

Last updated 2905 days ago by JohnLast

Bull market:

Period in which prices are primely rising normally for an extended period. Usually we can find three phases:

  • accumulation
  • steady advance (we could observe increasing volume where that can be measure)
  • public begins to get aware and want to take profit from rising market

Take care of the Bull traps

This is when we have a break - out below the trend line but that turns out to be a fake.

Bear market:

Period in which there is a long decline interupted by sharp and important rallies (sometimes for a long time). There are three phases:

  • distribution
  • panic
  • washout

The investors who can stand during the first two phases usually liquidate in the third phase.

Take care of the bear traps.

This is a powerfull and sharp corection in the bear market. This can happen when the bear market is established but it can happen in the beginning.

This is very dangerous especially in the beginnin where it lacks a clarity if this a correction in a bear market or a rally in resuming of the bull market. 

 

Bull market and EUR/USD

The bull market in Eur/Usd is characterised by a slow and jagged advance. The corrections are very sharp

The bear market in the Eur/USD is characterised by very sharp declines. The corrections are usually sharp but they can be also slow and jagged.  

I personnaly think that for me it is easier to trade the bear market in Eur/ Usd. As the movement is very sharp I know very quickly if  have a winner.