What is the Bear Market?
The bear market concept is often used not only for forex trading but also for all financial markets (stocks, bond markets). The bear market is called the English bearish market. The bear market is often used when markets are pessimistic and when prices are expected to trend down for a long time. To say that a financial product has entered the bear market, the main trend must first be downward (downward trend). However, if there is a 20% downward movement from the previous peak level.
While there is no general consensus about how long the bear market will last, it is expected that prices will continue to fall for a long time. Demand for products on a market under the bear market is declining. Because demand is decreasing, nobody wants to buy those products and prices continue to fall.
The bull market, on the contrary of the bear market, shows that the related market will be on the rising trend for a long time and that the demand for the products in that market is increasing.
GOLD MONTH MARKET – EXCHANGE MONTH MARKET
The gold bear market indicates that gold prices will remain low for a long time, prices are showing a downward trend and this trend will continue. The stock market also indicates that the stock market index will stay low for a long time, the prices of stocks are showing a downward trend and this tendency will continue.
If gold prices were to be taken as an example, the bull market was experiencing a rising trend from the beginning of 2000s to the end of 2011 for a long time. However, in the middle of 2013, 2011 peak price level of 1900 dollars ounce of the level of 1500 ounces fell below. There was a decrease of about 30% from the previous peak level and gold prices were officially under the influence of the bull market.