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Bearish is a condition that describes the weakening of the stock market at that time. It can be said that if the stock market is falling by 20 percent, then that is when this bearish event occurs. For more details about bearish, you can understand it through the article below.
Of course, before you continue to read the explanation in the article below, it is a good idea to register yourself with GIC Affiliate by becoming an IB to be able to get various kinds of bonuses and extra money that you can use to trade on GIC as well.
Table of Contents
What Does Bearish Mean?
Bearish is a condition when the stock market is experiencing a downward or weakening trend at that time. The decline in the stock market can be influenced by economic growth that is slowing down or even decreasing from the previous year. Such as the increasing unemployment rate, the deficit in the trade balance, or the company's profits growing negative, or other factors.
A sign of this bearish is a decline in the stock price index as a whole. Investors also often use this term as a prediction or assumption that the stock price will later move down. So if this condition continues, investors will definitely consider the option to sell shares so that they can avoid trading losses.
Usually, conditions that were initially just predictions can change into reality. This is influenced by excessive reactions from investors, namely by starting to follow suit to sell the shares they own. As a result, there will be panic that causes a stock sell-off that is increasingly contagious to other investors.
To prevent you from getting caught in this bearish condition, you must know the direction of the signal. The only way you can do this is by analyzing the market that is happening at that time, either with technical or fundamental analysis.
So this method can help investors to evaluate their assets and projections in the future. After learning what bearish itself is, you can fill out the Trader Assessment survey for traders so you can consult with GIC about trading itself.
Bearish Signal
In simple terms, you can understand that bearish is a signal or sign that will indicate a downward price movement trend at that time. This bearish or bullish concept is actually not only applied to the world of trading or forex trading, but also to trading instruments and any instrumented investment.In essence, every item that is being traded will definitely have a time to have a price that is rising from the previous price or there is also a time to have a price that is falling from the previous price. To take advantage of bearish signals and also bullish signals is actually very easy.
However, in its application, it is certainly not as easy as it looks, due to the effects of market movements that are usually very difficult to predict. So it is not uncommon if suddenly a bullish signal appears and indicates a positive trend that causes the owners of the capital to rush to open buy positions, and it is possible that suddenly the trend will reverse direction by showing a bearish signal.
Divergence Bearish
This bearish divergence is basically the opposite of the bullish divergence itself. Bearish divergence will indicate a potential downward trend when the price is rising to the latest highest peak while the oscillator will refuse to reach the new peak.
This bearish divergence condition will occur when the price chart at that time will reach a higher high position while the indicator is at a lower high position. Usually, this chart will show a trend that will start to reverse, which was initially rising to a downward trend.
Flag Bearish
In general, this Bearish flag pattern will be preceded by a downward price movement by forming a lower low (LL) and as if it will become a pole. Which will then be followed by a technical rebound (price increases slightly) which will seem to resemble a flag.
This Bearish flag is a technical pattern that will provide an extension or continuation of a downward trend on the chart.
This bearish flag formation can be underlined starting from a strong initial movement downwards, followed by a consolidation channel in an upward direction on the existing chart. The strong downward movement is known as the 'flagpole' while the consolidation itself will refer to the 'flag' itself.
Pennant Bearish
The bearish Pennant pattern is a continuation pattern that will occur in a downward price trend. This pattern can occur when the price is showing a strong Downtrend position and is followed by a correction marked by small candlestick patterns and also tends to narrow.Furthermore, this price formation will later form a triangle pattern that will indicate a consolidation.
Simply put, it can be described that this bearish pennant pattern begins to form when the flagpole is showing a very strong or sharp price decline followed by a pause and then forming a Pennant (triangle).
This condition will occur when some sellers are taking profit-taking action. Which rate of decline will then continue after a penetration from new sellers entering the market, this is what will push the price strongly by continuing the Downtrend.
This pattern will occur when the price moves towards a very strong downtrend, which then causes a correction that will be marked by a pin bar reversal or doji formation which will be followed by a triangle pattern indicating consolidation, but because bearish sentiment can still be strong, the price will continue the downtrend by breaking through the triangle support line or at the bottom.
This situation could occur as a result of some sellers who have taken profit taking action, while new sellers will follow by entering the market, causing prices to be pushed up strongly and continuing the downtrend.
Before continuing to the next discussion about candlestick patterns, it is also a good idea for you to fill out the user satisfaction survey regarding GIC itself with the aim of being able to maximize existing profits.
Candlestick Pattern
Candlestick is an ancient diagram method originating from the land of cherry blossoms with an accuracy level that is beyond doubt. This charting technique has even been used for a long time, and is even more popular among traders today. If you pay attention, this candlestick will reflect the impact of investor sentiment on the price of existing securities.
Usually, this kind of analysis is indeed carried out to be able to determine when is the right time to enter or exit when trading. This method can be said to be a smart strategy to be able to trade several financial principles, such as stocks, cryptocurrencies, and foreign exchange.
But you need to remember that the use of candlesticks can indeed be classified as a directional analysis method. This means that this analysis will rely on a subjective intuition from the trader to be able to understand the various patterns that exist.
The patterns on the chart will later be executed through actual trading activities. This method will later produce a consistent profit if it can be accompanied by experience and high flying hours.
This candlestick also has various types of patterns with some of them being very profitable if used.
These profitable patterns will generally follow the systematics of a technical analysis. Candlesticks are about two levels of alert that you need to understand, namely "signal" and "confirmation". One of the abbreviations for alert will later indicate an upward or downward movement.
However, traders do not have to immediately prepare by placing a position first for a "signal". As for "confirmation" itself, it means that traders can place a position that is in accordance with the direction of the movement of the displayed pattern.
Also read :
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Get to Know Reversal Patterns in Trading and Their Candlestick Patterns! |
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Candlestick Pattern: Complete Explanation, Single, Dual, to Triple |
Engulfing Bearish
This bearish engulfing pattern will produce the strongest signal when it appears at the end of an uptrend. The pattern has been created by interpreting data from two completed candles. The first candlestick will later depict the end of the strength of the trend that has been set.
You should also note that the size of the primary/bullish candle can vary, but the most important thing is that the body of this candle will be completely 'engulfed' by the next candle.
Doji and also other small bullish candles will give the strongest signal because it can reflect market doubt on the current trend. For the second candlestick in the pattern is a reversal signal. The candlestick will consist of a long red candlestick and will create a new downward price momentum later.
This bearish candlestick should be opened above the previous candlestick's close and should be closed well below the previous candlestick's low.
This strong downward movement will reflect a seller overtaking the buying power and also often to precede a continuing price decline. The further the secondary/bearish candle will go down, the stronger the signal.
Harami Bearish
The Bearish Harami pattern is a reversal pattern that will appear at the top of an uptrend. This pattern will consist of a bullish candle with a large body, followed by a bearish candle with a small body that is enclosed within the body of the previous candle.
As a sign of changing momentum, this bearish candle will have a small gap down with the condition of opening near the middle range of the previous candle.
The opposite of the Bearish Harami itself is the Bullish Harami which can be found at the bottom of a downtrend. The size of the second candle will determine the potential of the pattern itself, the smaller the size of the candle, the higher the possibility of a reversal.
You can understand these patterns directly by trading. If you want to test how far your knowledge is in trading, then you can do a Preliminary Test to measure your talent in trading.
Difference between Bearish and Bullish
Bearish condition is a condition of weakening or decreasing stock prices as a whole. So, bearish is the opposite of a strengthening stock market condition. This bearish market condition will be marked by a decline in the stock price index as a whole.
The term bearish is also used by investors who will predict or believe that stock prices will move down. This bearish stock market is also marked by a market condition that will show a downward trend or downtrend.
Investors or traders who see signs of a downtrend will tend to believe in negative things that could happen to the market.
Those who ultimately believe in negative things will continue to sell the stocks they have been holding so far in order to avoid losses.
Things that could actually be just predictions can become reality due to excessive reactions from investors or traders who have sold their shares. The effect can even cause panic for other investors until there is a follow-up action to sell shares.
While bullish is a condition where the stock price is strengthening or increasing overall. The term bullish is also known as a bull market.
The term bullish itself will also be used as a result of predictions regarding rising stock prices or investor confidence regarding stock market conditions that will show an upward trend (uptrend).
The stock market that is currently in a bullish condition, in general, has been influenced by good economic conditions. So it could be that the bullish market will indicate that the stock market has just emerged from a downturn.
Supply and demand for shares will also play a role in determining whether a stock market condition is classified as bullish.
High value demand will potentially drive an increase in a stock price, aka bullish itself. So, the difference between bullish and bearish is the position of the stock price as a whole or through the Composite Stock Price Index (IHSG).
The bullish condition means that the stock price is green or rising, while for "bears" the stock price is red or falling.
Before continuing with examples of bearish and bullish cases, you can invite your friends or people closest to you to join in trading with GIC and get additional income from the program.
Bullish and Bearish Examples
A simple example of a bullish market can be seen in the stock price graph or chart below.
From the picture, you can see the bullish market that occurs when the price will always make a higher high and can also be consistent with being above the Moving Average 20 for a fairly long time.
For an example of a bearish market itself, you can simply see it through the stock price graph or chart below.
From the picture, you can see that a bearish market will occur when the price will always make a lower low and can also be consistent with being below the Moving Average 20 for a fairly long period of time.
Another Bullish example is when an investor is bullish on the EUR/USD currency, it means that he believes that the Euro currency will continue to increase against the USD currency. So in that case the EUR/USD graph can be predicted to move up.
As for another Bearish example, when an asset is predicted to experience a bearish condition, it means that the price of the product will fall. For example, when an investor who is currently experiencing a bearish condition against USD/JPY, he will believe that the value of the USD will continue to decrease in value against the Yen currency.
Questions About Bearish
Berikut terdapat beberapa pertanyaan yang sering diajukan oleh para trader mengenai bearish yang masuk ke dalam pembahasan kelas lanjutan forex itu sendiri. Kalian bisa memahaminya jika penjelasan di atas masih kurang jelas mengenai bearish itu sendiri. Pertanyaan tersebut adalah:What Is Bearish on Crypto?
in a bearish market, the amount of demand is small, so only a few investors will buy the asset, and the price of the asset will continue to decline due to the abundant supply of assets. Bearish also means a decrease in price and this is generally referred to as a bear market phase. Where there is a decrease of 20% in the market.
The 20% decrease is usually something that can last for several months. This bear market will give birth to an attitude of ongoing pessimism among traders because it will last quite a long time and sometimes it will be very difficult to rise again.
However, the bear market itself will not last forever, this can also be seen from March 2020, where the price of Bitcoin was only $ 4,000- $ 5,000, which then slowly improved and even touched a price of $ 42,000.
For traders who are optimistic about bear market conditions, they will often be used as a momentum to be able to make purchases and also save crypto assets at very cheap prices before they finally make a profit in the future.
What Is Bullish in Crypto?
The key to predicting the bullish trend itself can be seen from the acceptance of Bitcoin or other crypto assets as a method of payment and also an investment asset. The more bitcoin is accepted by the wider community, the brighter the future of crypto.The law that applies in this trend is supply and demand. In the bullish market itself, the amount of demand will be high, so that the supply of assets will decrease and the price of assets will increase.
Both bearish and bullish themselves will certainly have their own benefits if you can understand the current situation and manage it to be an advantage for you. Therefore, studying each case example that exists will make you more proficient in doing trading itself.
After knowing about bearish itself, you can also understand other discussions in the GIC Journal. Both for the type of bearish itself, to the discussion about trading where you can learn all the tips and tricks.
In addition, you can trade on GIC by downloading the GIC Mobile Apps on the Play Store or App Store via your smartphone.
