Bull and Bear Market
When
you are into the work of stock trading, you often hear the terms “bull” and
“bear”. These terms are used to define market conditions. It is important to
know and understand what the terms indicate, in order to understand the
functioning of the market. Let’s understand what are bear and bull markets and which one is better Bear
or Bull market? And then let’s dig deeper into it.
What
Are Bear and Bull Markets?
The
words Bull and Bear are used to describe whether the market is appreciating or
depreciating in value. Sometimes, these terms are also used to determine how
investors think about the market and the subsequent trends.
In
simple words, when the stock market rises high, it is said to be bullish or
bull market. It is characterized by a continual increase in market share
prices. When the market is bullish, most investors often believe that the
uptrend will remain for a longer period of time.
On
the other hand, the market is said to be bearish, when it is facing a downfall.
A bear market is the indication of decline. In Bear Market, the share prices
start dropping, and the economy of the country slows down.
Which
one is better Bear or Bull market?
Both
bear and bull markets have different impact on your investments. When the
market is bullish, short term or intra-day trading takes a peek. On the other
hand, the bear market brings long-term investment opportunities to investors.
So it’s a good idea to spend some time to govern the market and make investment
decisions accordingly.
Open
vs High
Opening price is significant especially
at the beginning of the market, to determine day trading strategies. The price
at which stock first trade on trading day is known as opening price. Open vs high-low generally gives
you the first impression of how a stock will perform throughout that trading
day. Hence, the effect of news, events reflects on opening price, at times
leading to the opening of stock in gap up or gap down.
When
this opening price is compared with High or low, it helps the trader to take an
effective position in the market. Therefore, a specific feature where High
price can be compared with low prices, would be beneficent for the trader.
Open
vs High low can be understood into two sections, in order to generate Buy &
Sell signal:-
Open equals to high
This
indicates Bearish trend as prices will probably move below high price. In other
words, a trader can go Short. Whereas Previous high will help a trader to
identify breakout by comparing it with current day’s high price.
Open equals to low
This
indicates Bullish trend, thus a trader can go long. Here prices will possibly
move upward beyond low price. However, previous low can help in determining the
breakouts.
We have thus developed open v/s
high-low feature for traders to identify intra-day trading strategies and even the
‘%chg’ option plays an important role for intra-day traders. This feature in TruedataCheetah is shaped in such a way where a trader can certainly
take position by just observing the results.