the retracement itself against the trend (although forex temlam amos this can be risky). In other words, people are buying. This is because it takes much more information as far as trades in order to push the price around, be it up or down. One of the key benefits of forex trading is the opportunity it offers traders in both bull and bear markets.
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Of course, it works in the opposite direction as well. Just like in bull markets, the price doesnt have to constantly fall, but can make several corrections (retracements) on its way down. Knowing the current market environment is very important in order to avoid trading against the overall trend, and traders can further add to their positions at every peak or trough during the trend. By being aware of market trends, can help you to make the best decisions of how to manage risk and gain a better understanding of when it is best to enter and exit your trades. The image below shows what a bearish market environment looks like.
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When trading the financial markets, you will quite often hear the expression bull market, or sometimes bear market.
While the exact origin of these two.
Bull someone who is going long or buying Bear someone who is going short or selling.