Trend is the direction of the market. There are three types of trend; uptrend, downtrend and ranging market or flat. The last trend type is when the price change is insignificant and tends to balance in a narrow range.
Prices mover upwards in an uptrend and downwards in a downtrend. Sometimes instead of these terms people say that the market is"bullish" when the trend is up, or that the market is "bearish" when the trend is down. In practice, professional traders use the terms bullish and bearish often. These terms have historic origins. At the beginning of the first century AD, people organized bull and bear fights for entertainment. People began to notice the habits and characteristics that the bulls and bears had when attacking their opponents. The bull attacks with his head down and horns up thrusting the opponent, i.e he makes a bottom-up movement. The bear swipes down trying to knock his opponent down, i.e he makes his movement top-down.
The bullish trend is considered to describe the prices moving up and the bearish trend describes the prices moving down. These terms are widely used today. Basically, the market participants are divided into two groups depending on their expectations and the direction of the transactions they conduct:
BULLS are those who expect the prices to go up, which is why they are buying the market.
BEARS are those who expect the prices to go down, which is why they are selling market.
Prices mover upwards in an uptrend and downwards in a downtrend. Sometimes instead of these terms people say that the market is"bullish" when the trend is up, or that the market is "bearish" when the trend is down. In practice, professional traders use the terms bullish and bearish often. These terms have historic origins. At the beginning of the first century AD, people organized bull and bear fights for entertainment. People began to notice the habits and characteristics that the bulls and bears had when attacking their opponents. The bull attacks with his head down and horns up thrusting the opponent, i.e he makes a bottom-up movement. The bear swipes down trying to knock his opponent down, i.e he makes his movement top-down.
The bullish trend is considered to describe the prices moving up and the bearish trend describes the prices moving down. These terms are widely used today. Basically, the market participants are divided into two groups depending on their expectations and the direction of the transactions they conduct:
BULLS are those who expect the prices to go up, which is why they are buying the market.
BEARS are those who expect the prices to go down, which is why they are selling market.
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