Bear / Bearish
A trader who expects prices to fall, or a market experiencing declining prices.
A bear expects prices to fall and trades accordingly, typically by selling or shorting. A bearish market is one in sustained decline.
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
Bear markets can last months or years
Selling rallies is a common bear market strategy
Watch for bear traps at key support levels
Bear / Bearish Example
Say an index falls 20% from its high while headlines stay grim and every rally fails at a lower peak. That is a bear market, and bears profit by shorting into strength or simply staying out until the tape turns.
How Traders Use Bear / Bearish
Respect the regime more than your opinion. In a real bear market, dip-buying bleeds accounts slowly. Rallies are for selling, cash is a position, and shorts need tighter risk because bear-market rallies are violent.
Related Terms
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