Bullish Market, Bearish Market and Range Bound Market

BULLISH, BEARISH AND RANGE BOUND MARKET

In investing world, “bull and “bear” is used a lot to refer to market conditions, mainly it depicts stock markets performance whether, the market is appreciating or depreciating.

A bull market is a market that is on the rise and where the conditions of economy are favorable whereas a bear market is the one that is in decline.

A range bound is the one in which prices bounces between a specific high price and a low price.

In bullish market, there is a strong demand and weak supply for securities, whereas in bearish market, more people are looking to sell then buy soo the demand is lower than supply hence share prices drop.

Investors are willing to participate in the hope of obtaining a profit but in bear market, market sentiments are negative so investors begin to move towards fixed income securities instead of equities

Also the scope of international investment gets widens up in bullish market but in bearish market international investments migtht get postponed as it is not a favorable option to carry on.

Range-bound trading methodologies include associating response highs and lows with flat trendlines to distinguish regions of help and opposition.