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Bullish and Bearish

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Bullish and Bearish

Bullish describes an expectation or market condition associated with rising prices. Bearish describes an expectation or market condition associated with falling prices.

In Candlesticks

On a basic candle, a close above the open represents a positive price change during that period, while a close below the open represents a negative price change. Charting platforms may display these states using different visual conventions.

Broader Meaning

Bullish and bearish are not absolute predictions. We can be bullish on one timeframe and bearish on another. We can also be bullish about a company over a long horizon while expecting a short-term decline.

Key Terms

Bullish, bearish, positive price change, negative price change, market bias, timeframe.

Knowledge Check

  1. What does bullish generally mean?
  2. What does bearish generally mean?
  3. Why can bullish and bearish views coexist across different timeframes?