Essential Popular

Bear / Bearish

A trader who expects prices to fall, or a market experiencing declining prices.

Definition

A bear is a trader who believes an asset's price will decline and trades accordingly (selling or shorting). A bearish market is one experiencing sustained price declines. The term comes from how bears attack - swiping downward with their paws.

How It Works

  • Bearish trader: expects prices to fall
  • Bear market: 20%+ decline from recent highs
  • Bearish signal: technical pattern suggesting downside
  • Going short = bearish position

Types of Bear / Bearish

Bear Market

Prolonged period of falling prices (20%+ decline)

Bear Trap

False breakdown that reverses higher, trapping shorts

Bearish Divergence

Price makes higher high but indicator makes lower high

Trading Tips

1

Bear markets can last months or years

2

Selling rallies is a common bear market strategy

3

Watch for bear traps at key support levels

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James D. from London

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