Forex or foreign exchange (foreign exchange) is a global currency exchange rate that is currently being loved by most people. There are so many people who jump in the forex world to gain financial strength. As many of us already know, currently all prices have increased which is an unreasonable increase. Therefore, forex is considered a passive income that is chosen by most people because it is flexible and can be learned self-taught or can even be learned by attending webinars or only through YouTube.
This high desire to gain more financial strength and live a comfortable life is what drives people to try various things, including jumping into the world of forex. For this reason, forex can indeed be one of the best choices for passive income because forex will not interfere with your work time.
To be proficient in the world of forex, you must understand the basics of forex first. You must create a demo account offered by the broker of your choice to be able to learn more about the market in order to become proficient immediately. In addition, there are many terms in the forex world that you must learn so as not to fall for it later.
One of the terms in forex discussed this time is the term Bearish and Bullish market.
You will read and listen to this term very often and this will greatly affect the reading of currency movements to analyze your market.
Bearish and Bullish are both terms taken from animals in English to describe capital market conditions.
In the forex world, Bearish means a decline and is used to describe a depreciating market. While Bullish means an increase and is used to describe an appreciating market
This bear market is characterized by price corrections or declining prices due to market participants who are pessimistic about the market. The market will experience a decline (downtrend) and is usually marked by a sharp decline in prices first.
If this happens, it means the economy of the country concerned is sluggish and the unemployment rate is rising. The price of goods increases, income decreases, so that it has an impact on decreasing people's purchasing power and impeding investment and decreasing company profits. It is the demand in the market that is lower than the supply that causes the market to decline. The market is not considered bearish if it does not fall by as much as 20 percent.
While the opposite is bearish is bullish. This bull market is characterized by a sharp rise in prices. This increase is experienced continuously. This illustrates that market participants view the market optimistically and the economic condition is good.
Bullish indicates that the country's economy is doing well, which is indicated by a decrease in unemployment, an increase in corporate profits, and an increase in income, thereby increasing risk appetite from investors, resulting in increased purchasing power. This increase was also due to increased demand and a lack of supply.
To find out the market trend, you can use fundamental techniques by knowing the important news that will be issued by the relevant country and can also use the indicators that have been provided on the metatrader platform you are using, such as the moving average indicator. You can use the SMA200 indicator to find out the trend of the currency. If the SMA200 line is below the line, it means that the market will tend to experience a downtrend. And conversely, if the SMA200 line is above the line, it means that the market is likely to experience an uptrend.
Keep in mind that market conditions can change at any time. From a bullish condition it could turn into a bearish one within a few hours and vice versa. This can happen because the forex market is very liquid.
