📈 Bullish vs Bearish: How Market Trends Shape Trading
In trading, bullish and bearish markets represent the two fundamental directions of price movement:
- Bullish = rising prices
- Bearish = falling prices
Understanding these dynamics is essential for traders. At FTG Funded, we believe opportunities exist in both directions — as long as you approach them with discipline and strategy.
🔼 What is a Bull Market?
A bull market is a period when asset prices rise consistently over time (weeks, months, or even years).
Key Characteristics:
- 📈 Typically defined as a 20% or more increase from recent market lows
- 🌍 Doesn’t mean every asset rises — but the overall trend is upward
- ⏳ Bull markets are often recognized after they’ve already begun
- 💼 Traders with a bullish outlook usually take long positions to profit from rising prices
🔽 What is a Bear Market?
A bear market is the opposite — a period when prices decline consistently from recent highs.
Key Characteristics:
- 📉 Generally marked by a 20% or more drop in average market value
- ❌ Not every asset falls, but the majority follow a downward trend
- ⏳ Bear markets are typically shorter than bull markets, lasting months rather than years
- 💼 Traders with a bearish outlook often use short-selling or hedging strategies to profit
👤 Bullish vs Bearish Traders
Traders themselves are often described as bullish or bearish
Candlestick patterns show several individual candles on a graph. Each candle represents the opening, high, low, and closing 🕯️ Candlestick Patterns in Trading
Candlestick patterns are one of the most widely used tools in technical analysis. Each candlestick on a trading chart captures the open, high, low, and close prices of an asset over a chosen timeframe — whether that’s one minute, one hour, or one day.
By recognizing and combining these candles into patterns, traders can identify trend reversals, continuation signals, and overall market sentiment at a glance.
🔑 Key Parts of a Candlestick
- Wick (or Shadow):
- Upper wick → highest price during the period
- Lower wick → lowest price during the period
- Body:
- The thicker middle section showing the opening and closing prices
- Color:
- 🟢 Green/White = Bullish → Closing price is higher than the opening
- 🔴 Red/Black = Bearish → Closing price is lower than the opening
🔽 Bearish Candlestick Patterns
These patterns suggest potential declines or trend reversals from bullish to bearish momentum:
1. Evening Star
A three-candle reversal pattern signaling a potential downtrend.
- Candle 1: Strong bullish (green/white)
- Candle 2: Small body (indecision, green or red)
- Candle 3: Strong bearish (red/black) with a long lower wick
👉 Indicates weakening momentum and potential continuation downward.
2. Hanging Man
A single candlestick with a small body, little to no upper wick, and a long lower wick.
👉 Suggests heavy selling pressure and potential for future price declines, especially after an uptrend.
🔼 Bullish Candlestick Patterns
These patterns suggest potential upward reversals or continuation of bullish momentum:
1. Hammer
Appears after a downtrend.
- Small body with a long lower wick
- Can be green/white or red/black
👉 Signals that buyers are stepping in, often marking a potential reversal upward.
2. Three Green Soldiers
A strong reversal pattern with three consecutive bullish candles.
- Each opens within the previous candle’s body
- Each closes higher than the last
👉 Suggests strong buying pressure and likely continuation of an uptrend.
📊 Trading in Bullish and Bearish Markets
Opportunities exist in both bullish and bearish conditions. The key is recognizing patterns, combining them with other tools, and applying disciplined risk management.
At FTG Funded, we help traders put these skills into action by providing:
- 📈 Exceptional trading platforms
- 📜 Fair and transparent rules
- 💼 Funded accounts up to $200K
- 💰 Profit splits of up to 90%
🚀 Start Trading with FTG Funded
Whether you’re spotting bullish hammers or bearish evening stars, success comes from preparation and discipline.
👉 Ready to prove your edge? Start your FTG Challenge today and trade the markets with confidence.
