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
Related Terms
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