Differences And Characteristics Of Bear And Bull Markets

In the bull markets, the price series are well ordered. Generally, bull prices have some rules, which makes it easier to make some decisions when creating operations. Also, market volatility does not permit creating a formula that works 100% of the time. But at least, unlike bear markets, prices remain more stable.

In bear markets, it is much more difficult to control price behavior since they are often capricious. The influence that exists on prices in bear markets is much more noticeable. It is not uncommon to observe an even more pronounced decline in a downward trend as a result of a moment of panic and uncertainty.

The highs and lows are usually more controlled; that is, they tend to be more stable and less volatile.

The same does not happen with the maximum and minimum prices of the decreasing markets, where the values ​​tend to suffer many more disturbances in their quotations. In bull markets, other phenomena also occur that cause abrupt changes in the trend, such as euphoria, so characteristic of rising markets.

However, bear markets are virtually influenced by any circumstance, which makes it much more difficult to operate in this market. The limit orders how the well-known stop loss without going any further becomes an arduous task of driving in a market with excess volatility.

It should also be noted that in markets with a downward trend, speculation takes on much more prominence than in bull markets is (Bull Market คือ which is the term in Thai). The speculative component is much more noticeable in downward prices, and that must be taken into account.

If we look at a graph of the markets in both trends, we will see a clear difference from one type to another. The next thing will be to decide which one will suit us the most to operate successfully.