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What is Bullish?
To make a strong or rising trend by buying is a bullish action that must be taken by a trader. Simply put, you must take a bullish stance by believing that the trading you are doing is an asset that will increase in value. By coming from the word bull, it makes it a symbol to represent opinions or actions. Someone who has a bullish mindset can buy the assets they use for the bullish itself. Alternatively, those who think that prices will rise will decide not to make any trades based on that opinion. This bullish attitude can be a very specific opinion about a stock, or a broad opinion about the market as a whole. Because it comes from the word bull, it can be interpreted as a bull that attacks so that it pushes prices even higher. A bullish market is a state where investment prices are rising, which is commonly referred to as an uptrend. Usually it will occur over a continuous period such as months or years. While bearish is the opposite.
Characteristics of a Bullish Market
Although this bullish condition will be marked by the price of financial instruments, there are still some characteristics that you as an investor should be aware of. These characteristics are:- The first characteristic of a bull market is the supply and demand for securities. In a bull market, there is strong demand and weak supply for securities. In other words, many investors want to buy a security but only a few want to sell it. As a result, stock prices will rise as investors compete for available equity.
- The second characteristic of bullish is the psychology of the investor itself. Because market players are influenced and determined by how individuals view and react to their behavior, investor psychology and sentiment also affect whether the stock market will rise or fall. Stock market performance and investor psychology will depend on each other. In a bullish market, investors are willing to participate in the hope of making a profit.
- The third characteristic of bullish is, changes in economic activity. Because the businesses whose shares are traded on the stock exchange consist of several larger economic actors, the stock market and the economy will be closely related. In a bull market, people have more money to spend and are willing to spend it. This makes the changes in economic activity that are driven even stronger.
What to Do in a Bull Market
Some things that are thought to be the triggers for this bull condition are low inflation, stable interest rates, low company valuations, and also the country's economic growth that is getting better. Of course, there are several strategies that can be done when a bull market occurs. Bullish conditions are the best conditions for investors to sell their shares. You will also benefit from capital gains. Also make sure you have a target price that has been set at the beginning to realize the profit. In a bull market, the ideal thing for investors to do is to take advantage of the price increase by buying shares at the beginning of the trend (if possible) and then selling them when they reach their peak. During a bull market, any losses should be small and temporary. An investor can usually actively and confidently invest in more equities with a higher probability of making a profit.How to Determine Bullish and Bearish
After understanding how bullish itself is, and what strategies should be done, this time we will understand about a stock or pair with the currency is a bullish or bearish condition. This can be known by analyzing the market, both technically and fundamentally.- Through fundamental analysis. This kind of analysis will help investors and traders in evaluating the projection of asset values in the future. An example of fundamental analysis is when the economy in the United States is in good condition, the USD exchange rate is predicted to experience bullish. Likewise, when a public company has large debts and is losing money, the stock price will experience bearish.
- Through technical analysis. For technical analysis can be done by monitoring the price chart by paying attention to certain indicators. For example, when a trader analyzes the AUD/USD currency technically, they will usually use the Moving Average indicator. Investors can also monitor candlestick-type charts such as the IHSG on a monthly timeline.
What are the causes of bullishness and bearishness?
Basically, there are reasons why a stock price can change at any time. Either increasing or decreasing. The causes of these changes need to be considered in the capital market. With this, you can have a plan for the future in doing trading. The causes of bullish and bearish are divided into two, namely fundamental factors and market euphoria factors. Fundamental factors are a condition of the stock market that strengthens and decreases over a long period of time. Conversely, if market euphoria is only temporary and fleeting. So in the forex world, bullish and bearish will be very strongly related. Both conditions are related to currency pairs in the base currency state. When the base currency rises, the currency value will strengthen. This condition is known as an uptrend. Likewise, when the base currency decreases, the currency value weakens. This condition is called a downtrend. For example, when the Rupiah and Yen currency pairs experience bullish and bearish, the Yen will become the base currency and strengthen. Meanwhile, the IDR currency will weaken.
Bullish Related Discussion
There are also various bullish terms that you should know in the stock market. Here is a discussion related to each of these bullish terms.Bullish Pattern (Bullish Chart Pattern)
Bullish price action trading creates chart patterns that indicate an uptrend in the market through buying pressure from traders and investors that creates higher highs and lower lows and breakouts to the upside. Bullish patterns are visual records of the sound of bulls increasing the price level over a period of time. There are several types of chart patterns that reflect different types of overall sentiment. Continuation chart patterns confirm that the trend will continue in the same direction as the current overall trend remains in place. There are also reversal patterns that signal that the trend will then reverse. Bearish chart patterns will show lower highs and lower lows as well as a downside breakout below support. There are also bullish, bearish, reversal and continuation chart patterns. In addition, there are also bullish candlesticks that visually show buying pressure candle by candle. These bullish candlestick patterns can indicate a possible price reversal during a downtrend or a continuation of an existing trend. These candles can be single bullish or bullish candlestick patterns that consist of several consecutive candlesticks. Bullish candlestick patterns will visually show buyers who are able to take action higher and control the chart for the duration of the move. Most bullish candlestick patterns form first but then require a follow-through signal to confirm that a price rally has begun. The meaning of a bullish candlestick should be considered in the full context of the chart and its confluence with other technical indicator signals. A bullish candlestick pattern that forms when the chart is oversold can signal a reversal of a previous downtrend. A bullish candlestick that occurs at the end of an uptrend after a long previous price rally, after the chart has become overbought, is less likely to continue moving higher. These bullish candlestick patterns that later have confluence with other systematic buying signals such as moving average crossovers, breakouts, and other momentum signals are likely to increase the move higher.Bullish Divergence
Divergence is an early sign of market changes that can indicate when the market is losing its strength. When the market is moving in one direction, the real strength is getting ready to reverse direction. To make it easier, divergence is a useful pattern to provide information about the potential direction of a strong trend. This divergence is useful for you to be able to identify when a trend will continue and when a trend starts to slow down and even tends to reverse direction or reverse. Bullish divergence can be defined as a new low that has not been confirmed by a new low indicator indicating that the trend is weak and ready to reverse or reverse. Bullish divergence itself is quite simple to identify and shows when bears are losing power, and bulls are ready to take control of the market again. The advantage of using bullish divergence itself is that you can see clearly, while the disadvantage is that it cannot provide the right buy signal. Bullish devergence will occur when the price is in a lower low position but the indicator is in a higher low position, this condition indicates a trend reversal from a downtrend to an uptrend. There is also a hidden bullish divergence which is shown if the price is in a higher low position, while the indicator is in a lower low position. This condition indicates that the bullish trend will continue.Bullish Reversal
Bullish reversal is a bullish that occurs when a bearish market starts to flow in the opposite direction of its downtrend. Traders can take advantage of the reversal signal by determining the best time to exit a trade or trigger a new trade. In order for a stock to be considered to have a bullish reversal pattern, the stock must meet characteristics such as, preceded by a decline in stock prices for several days or what is known as a downtrend, several bullish confirmation patterns are found, more precise if supported by the Composite Stock Price Index (IHSG) which is experiencing a rebound. A bullish reversal must be preceded by a downtrend. After the reversal pattern occurs, the stock price then rebounds. So it can be called a bullish reversal, for that a stock must first experience bullish confirmation. Bullish confirmation means that several stock price patterns (candlesticks and chart patterns) are found that create a bullish reversal signal. Several candlestick patterns that describe a bullish reversal pattern are bullish engulfing, doji, hammer, inverted hammer, piercing line. Bullish reversal is generally quite accurate when supported by the IHSG index which is experiencing a rebound. Because when the IHSG rebounds, automatically a number of stocks that have experienced a decline and have a good pattern will generally also rise. Bullish reversal is generally used by stock traders who want to run the Buy On Weakness (BOW) technique, namely buying stocks at a low price when the price is falling.Bullish Engulfing
The bullish engulfing pattern is a candlestick pattern that is usually found at the end of a downtrend. It is created to interpret data from the end of two candles. The first candle will depict the end of the currency pair. The size of this candle can vary from chart to chart and is not directly related to the pattern itself. Small candles such as dojis are considered better in this position because they can reflect market confusion in the current trend. While the second candle is the most important candle of the pattern and is considered to be the actual reversal signal. This candle consists of a long blue candle that creates price momentum. Ideally the high of this candle should be above the high of the previous candle. The higher the candle, the stronger the signal. A new upward pressure on the chart will depict stronger buyers than sellers. This is often preceded by a price increase where buyers will enter the market in the next trend. The bullish engulfing pattern is simply a confirmation of what is agreed upon by market participants. When the bullish engulfing pattern forms, market participants agree that the price can go higher. In other words, more market participants are willing to buy than sell the instrument. How to recognize this bullish engulfing candlestick pattern can be from its characteristics, namely, a strong green candlestick that 'swallows' the body of the previous red candlestick, occurs at the bottom of a downtrend, a stronger signal is given when the red candle is a doji, or when the next candle closes above the high of the bullish candle. The advantage of using a bullish engulfing candle is that it is easy to recognize, an attractive entry level can be obtained, after receiving confirmation of an upward reversal.Bullish Harami
A bullish harami is a candlestick chart indicator that suggests a bearish trend may be coming to an end. Some investors may view a bullish harami as a good sign that they should enter a long position on an asset. A candlestick chart is a type of chart used to track the performance of a security, named for the rectangular shape depicted on the chart, with lines protruding from the top and bottom, as well as candlesticks and wicks. Candlestick charts typically represent a stock’s price data for a given day, including the open, close, high, and low. Investors looking to identify a harami pattern should first look for daily market performance reported on a candlestick chart. Harami patterns appear over two or more trading days, and a bullish harami relies on the initial candle to indicate that the downtrend is continuing, as a bear market looks set to push prices lower. For a bullish harami to appear, the shape of the bullish harami, which looks like the smaller body of the subsequent doji, must close higher within the body of the previous day’s candle. This indicates a greater likelihood that a reversal is imminent. How to identify a bullish harami on a chart is to find an existing downtrend, look for signals that momentum is slowing/reversing (stochastic oscillator, bullish moving average crossover, or subsequent bullish candle formation), also make sure the small green candle body is no more than 25% of the previous bearish candle. The stock will gap up, showing a green candle in the middle of the previous candle. Most forex charts will show two candles side by side, observe that the entire bullish candle is enclosed within the length of the previous bearish candle body, and finally look for confluence with the use of supporting indicators or key support levels.Bullish Continuation
Bullish continuation patterns are recognizable chart patterns that signal a temporary period of consolidation before resuming in the direction of the original trend. Consolidation occurs in the form of sideways price movement. The pattern completes itself on a strong breakout of the consolidation zone, resulting in a continuation of the previous trend. Continuation patterns are usually played in the short to medium term. Bullish continuation patterns appear in the middle of an uptrend and are easy to identify. There are several types of bullish continuation patterns. The main bullish continuation patterns are the first is the ascending triangle pattern which is a consolidation pattern that occurs in the middle of a trend and usually signals a continuation of the existing trend. This pattern is formed by drawing two converging trendlines (a flat upper trendline and an upward lower trendline), as price moves temporarily sideways. Traders look for the next breakout, in the direction of the previous trend, as a signal to enter a trade. The second is the bullish Pennant Pattern which is a continuation chart pattern that appears after a security has experienced a sudden large upward movement. It develops during a short period of consolidation, before price continues to move in the direction of the trend with the same initial momentum. Pennants are usually marked by a triangle pattern consisting of many forex candlesticks. It is important to note that the triangle pattern should not be confused with the larger symmetrical triangle pattern. The third is the bullish flag pattern which is a great pattern for traders to master. Explosive moves are often associated with bull flags because they provide a temporary pause for a sharp initial move. Bull flags and pennant patterns occur under similar conditions (price moves sharply and suddenly) but the bullish flag can offer a more attractive entry level. The bullish flag is characterized by a downward sloping channel represented by two trendlines parallel to the previous trend. And finally the rectangle pattern characterizes a pause in a trend where price moves sideways between parallel support and resistance zones. The pattern indicates price consolidation before resuming in the original direction of the existing trend. An added benefit of this pattern is that investors have the opportunity to trade the range or trade the eventual breakout, or both.Bullish Pennant
In a bullish pennant, price reaches a level where it is time to take profits and begins to move lower. Price moves lower in a lower high/higher low manner in a triangle pattern. Price moves in a large range to a small range as it passes through the triangle point. This triangle is a pennant formation. Investors will refer to the price action in a triangle as consolidation. Typically, in an uptrend, the top of a bullish pennant will be sloping downward. This makes sense because, in an uptrend, profit taking will result in lower prices as traders sell the stock. This can be measured from the price breakout point to the highest price point before price began to pull back. There is a blue dotted line that represents the resistance or top of the price consolidation area. There is a flagpole that begins when price moves above the resistance area represented by the blue dotted line. The best way to illustrate a bullish pennant formation is to display it on a stock chart. The key to a bullish pennant is that it is usually most significant when it appears after a sharp price increase. A pennant can last for a week or more. However, pennants usually form over a shorter period of time than flag formations. The highs move slightly lower, and the lows move slightly higher. Drawing a trendline connecting the highs and then connecting the other lows forms two converging lines which is the defining feature of a pennant. A closing price drop that breaks through the low of the pennant or pennant indicates a breach of the pennant formation which has the potential to cause a trend change. This is why traders and investors should wait for a breakout of the pennant to confirm that the previous trend is still in play. The best thing about this is not to anticipate a breakout one way or the other. With this in mind, some people even consider the pennant area to be a “no-trade zone.”
Bullish Flag
A bullish flag is a bullish chart pattern formed by two rallies separated by a short consolidation retracement period. A flagpole will form on a near-vertical price spike as traders get blindsided by buyers, followed by a pullback that has parallel upper and lower trendlines, forming the flag. The initial rally ends with some profit-taking and price forms a tight range that makes slightly lower lows and lower highs. Eventually, price peaks out and forms a regular pullback where the highs and lows are literally parallel to each other, forming a slanted rectangle. This illustrates that there is still support in the market despite the unwinding of some large long positions and traders entering short positions looking for a reversal, forcing price to drift lower. During the consolidation, traders should be prepared to take action if price breaks the upper range level and/or makes a new high, as this indicates that bulls are back in control to fuel another rally. The upper and lower trendlines are plotted to reflect the parallel diagonal nature. A breakout is formed when the upper resistance trendline is broken again as price surges back to the high of the formation and explodes to trigger a breakout and another uptrend move. The sharper the spikes on the flagpole, the stronger the bullish flag. For a bearish flag is an inverted version of a bullish flag.Trend Bullish
A ‘trend’ in the financial markets can be defined as the direction in which the market is moving. A Bullish trend is an upward trend in the prices of industrial stocks or an overall market index, characterized by high investor confidence. A bullish trend for a period of time indicates an economic recovery. There are 3 chart patterns that predict a new bullish trend, namely, Picking the very top or bottom of a trend is a bit of an optimistic goal for most traders. However, it is entirely realistic to spot a reversal as it is forming and jump on the trend early. If you can catch 70-80% of a trend, and if you can do it consistently, that is far better than having to hit the actual top or bottom every once in a while. These 3 patterns will help you identify these reversal points. Double bottoms, triple bottoms, inverted heads, and shoulders are 3 of the best reversal patterns you can learn to identify. The first is double bottoms and tops are some of the most popular patterns you will encounter in the world of technical analysis. They are possible because of their frequency, presence at various trend levels, predictable outcomes. A double bottom occurs when the trade is already in a downtrend. The second is the triple bottom which is very similar to the double bottom except there are three points of support instead of two. However, with that third point there is also more credence in the new support that is being built. This makes the triple bottom a much stronger chart pattern. Like the double bottom, the triple bottom will occur in a downtrend. Ideally, this downtrend has been going on for quite some time. This is probably the main downtrend. The longer the previous trend, the more likely a reversal is. And finally the inverted head & shoulders is a very nice bullish reversal pattern and is a variation of the triple bottom. This pattern is basically a triple bottom where the middle selling point has managed to make a new low. But the continued selling pressure has not been able to match it let alone break through to a new lower low. In the case of this pattern, look for it to occur in a downtrend of the main trend. Like the double and triple bottoms, you will first see the stock reach support and bounce.Bullish Saham
Bullish stocks are conditions that indicate that stock prices are increasing continuously over a certain period of time. The term bullish is also known as a bull market. Meanwhile, when talking about Forex trading, bullish is a condition where the base currency of a currency pair increases in value, while the other currency decreases. A bullish market like this is usually called an uptrend. When the stock market experiences an uptrend, it means that the economic conditions are good. The high demand from investors for stocks can also drive up the stock price itself, aka bullish. The cause of the rise and fall of stock prices is the public's panic factor regarding existing trends, the rise and fall of stock prices can also be caused by market manipulation. Usually conditions like this occur due to the actions of large investors who have a lot of capital. By utilizing the mass media, they create changes in the image of a company for certain purposes, either lowering or raising stock prices. Although the impact is quite significant, this condition will not last long. The reason is, the fundamental aspects of the company recorded in the financial statements can be used as a weapon to return the stock price to its proper position. The movement of foreign exchange rates makes sense if the fluctuation of the rupiah exchange rate against foreign currencies can affect the rise and fall of stock prices on the market. Especially for companies engaged in import and export. Other factors that trigger bearish and bullish markets are macroeconomic conditions or a country, for example, the rise and fall of interest rates due to the policies of the US central bank, fluctuations in Bank Indonesia's benchmark interest rate, inflation rates, and high unemployment rates due to political turmoil can also cause the stock price index to change. And the last is the global pandemic. Since early 2020, the world has been declared a global pandemic emergency due to the Covid-19 virus. As a result, the issue of recession has been widely heard in several countries, including Indonesia. This condition then caused the price of securities on the world stock exchange to decline.
Bullish Crypto
A bull trend is characterized by a long strategy, and a growing market such as strong demand and weak supply for securities. Most traders are full of optimism and positive growth. Many traders are ready to hold their crypto and sell high as soon as the price reaches its peak. There is no specific metric to determine whether it is a bull market or not. The most common definition of a bull market is a situation where the price surges by 20%, usually after a 20% decline and before a second 20% decline. The best way to take advantage of a bull market is to choose a long strategy, buying cryptocurrencies as early as possible in the trend, and then selling your assets when they have peaked with a higher probability of return.Sideways
Sideways is a flat market condition that tends to be full of doubt. This is caused by bullish and bearish factors that are equally strong. When sideways occurs, the market is in a consolidation phase, namely the process of finding new price movements, after being in a certain trend, namely up or down. So that the direction of the next stock movement can increase or decrease. However, what happens after the sideways condition is that no one will know whether the market will go up or down. So, investors and traders must be careful when facing this condition. Sideways conditions can be the right moment to refrain from trading activities. When this condition occurs, it is usually marked by the formation of small mountains, and shallow valleys with short green and red candles, stable market movements that do not go up or down. Taking steps to trade when the market is sideways is too risky, because it is quite difficult and dangerous. After knowing various things about bullish, you can still learn other things about terms in the world of trading. For that, it's a good idea to keep finding out about other difficult words before trading on a company. Thus the discussion from GICTrade regarding the explanation of "Understanding Bullish, Pattern, Flag, to Trend". You can also find out other information about investment, trading, and other finances, such as "OPEC Is? History, Duties and Objectives, and Members" only in the GIC Journal. Also make sure you deepen your forex knowledge at GICTrade, via NFP live trading.
