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
Related Terms
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