As a reversal pattern, it appears in a downtrend , signalling that an uptrend is imminent. Both patterns are indicators of possibilities for buyers to enter long positions.

A pennant is a continuation chart pattern, formed when a currency encounters a large upward or downward movement , followed by a brief consolidation , continuing to move in the same direction. Bullish forex traders see a breakout above the pennant as an opportunity to take advantage of the renewed bullish momentum in the market. You have to understand that a bullish market spikes investor confidence and expectations that strong trading results will continue for a considerable time.

To predict when this trend might change is difficult. The ideal is to take advantage of the rising prices by buying stock early and selling them when they have reached their peak. Yes, but keep in mind that you run the risk of stocks prices going down after you have bought it. Price and trade data source: JSE Ltd All other statistics calculated by Profile Data.

All data is delayed by at least 15 minutes. Telephone number: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money. Top 4 Brokers. Read Review. Comprehensive support and training, Global presence with a local feel, Uncompromising security, Advanced trading platforms.

Forex Brokers. Forex Trading Platforms. Trading Platforms. Brokers by License. Brokers Types. Broker Reviews. Brokers to Follow. Brokers by Account Type. Index Trading Platforms. Forex Trading South Africa. BEE Shares. Most Popular JSE Shares. Most Popular 20 Global Stocks. Build Your Own Share Portfolio. Open a FREE Trading Account. Open a FREE Trading Account Menu. What does bullish mean in trading? Bullish in forex trading Forex trading provides traders with the opportunity to trade in both bullish and bearish markets.

Ascending triangle pattern A triangle pattern in forex is a consolidation pattern that occurs mid-trend, usually indicating that an existing trend will continue.

Falling wedge pattern The falling wedge pattern , also referred to as the descending wedge, is a pattern that indicates future bullish momentum.

Bullish pennant pattern A pennant is a continuation chart pattern, formed when a currency encounters a large upward or downward movement , followed by a brief consolidation , continuing to move in the same direction. Characteristics of a pennant pattern : A flagpole : A pennant pattern always commences with a flagpole, indicating the initial strong move. Breakout levels : There are two breakouts where the upward or downward trend continues — one at the end of the flagpole, and the other one after the consolidation period.

The pennant itself : The pennant is the triangular pattern formed by the two converging trendlines. The pennant occurs between the flagpole and the breakout when the market consolidates.

Frequently Asked Questions What is a Bullish Market? A market in which a trader is optimistic that the price will go higher. Is a bullish market good? Do you sell or buy in a bullish market? Is it good to buy bearish stocks? Can forex make you rich? If you are a skilled trader it is possible but for most it is a rocky journey with many losses.

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The cookie is used to store the user consent for the cookies in the category "Performance". It does not store any personal data. Functional Functional. When going long, you would want the market to increase beyond the point that you purchased the currency pair.

Conversely, when going short, you would want the market to decline beyond the point that you sold the currency pair. These conditions are known as lateral trends or sideways drift. The lateral trends occur in the situations of the prices being within a stable range with no obvious trends besides the sideway trends. There are no signs of either Bulls or Bears, so the prices are fluctuating horizontally. There are 4 major techniques and strategies used by Forex traders in Bullish scenarios.

An incredibly simple and passive strategy, you can buy and hold a currency pair in order to profit from a Bullish market that is sustained. After establishing a long position, all you have to do is wait for signs of an ending Bullish market.

This is a strategy similar to Buy and Hold, but slightly more aggressive. More trades are purchased for every level of a certain increment in the price of currency pairs. This can continue up to a certain amount, or when the Bullish market is coming to an end. Aggressive traders who want to add trades substantially at the best prices will take note of downward corrections or retracements in the Bullish market.

There, they will purchase extra trades for profits. The most aggressive technique, trading in full swing will allow traders to constantly buy and sell as the market fluctuates for profit. You are able to use candlesticks to identify a Bullish pattern. In general, reversal patterns for Bulls should be formed within a downtrend, if not, they are what we call a continuation pattern.

These reversal patterns need a Bullish confirmation that is subsequently an increase in price movements. Some examples of Bullish patterns using candlesticks include the Hammer , the Inverted Hammer , the Bullish Engulfing , the Piercing Line, the Morning Star, as well as the Three White Soldiers.

You can click on the respective hyperlinks above if you wish to find out and understand more deeply how you are able to trade using these candlestick patterns! The most common indicator used by traders who are trend trading would be the Moving Average Convergence Divergence, also known as the MACD.

The MACD is a type of oscillating indicator, which is an indicator used for technical analysis. The MACD varies over a period of time, fluctuating either above or below the zero line. You can learn more about how you are able to use the MACD indicator when trading. We will now have a look at an example of a Bullish pattern, together with the MACD graph:. As seen in the graph above, the Bullish pattern here is rather obvious, where there are the Three White Soldiers rising sharply before making a slightly Bearish pattern.

Prior to the Three White Soldiers, the Evening Star is seen with a Bearish pattern. The general trend lines of the graph are marked in red. The MACD indicates a similar trend that has occurred in the past and as we can see, the trend predicted by the MACD is rather accurate.

There are 3 major techniques and strategies used by Forex traders to survive under Bearish conditions in the market. You can buy more affordable short-term and long-term puts. You can sell naked puts that other traders intend to purchase in hopes that it expires worthless so that you profit through holding the whole premium.

You can research on historical Bearish markets to find out more about currency pairs that can go up while the market is going down. Just like in a Bullish scenario, you are able to use candlesticks to identify a Bearish pattern. Some of the Bearish formations with candlesticks include the Bearish Dark Cloud Cover, the Evening Star and the Three Black Crows.

You can learn more about trading with the Japanese candlesticks here! Similar to the Bullish scenario, you can use the MACD indicator to help you trade in a Bearish market as well. The MACD will help you when trading as it is designed to show the changes of the trend of the currency pair. With the MACD, you can identify a Bearish pattern when it occurs and prepare to conduct the necessary trades. We will now look at an example of a Bearish pattern, together with the MACD graph:.

Following the fall, the price does not go back up yet, instead forming a lateral trend. Just like the example for the Bullish movement, the trend lines are marked in red. Similarly, the MACD indicates a similar shape as compared to the graph shown above.

These two graphs are actual trading scenarios from the MT5 trading platform, so you should bear in mind that these are some of the Bullish and Bearish patterns that you would definitely encounter while trading in the Forex market. It really depends on your preference. When buying Bullish, you want the market to keep rising before you sell the currency pair at the peak of the Bullish market. However, when going short, you want the market to fall as much as possible before buying in hopes that there would be a Bullish trend afterwards.

If you trade in the Bull market, you are most likely confident in the backdrop of the market so you would probably be interested in trading or holding positions for a longer period of time. However, trading in the Bear market would mean that you would be worried since there would be an uncertainty of falling prices. There is a lot of volatility here.

If you want more stability when trading, then go for the Bulls, but if you want to spice up your trading a little bit, then you can try out the Bears. A Bullish divergence refers to the pattern occurring when prices of a currency pair declines to lower lows, but the technical indicator hits higher lows.

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The term is even sometimes used to describe the economy of a country during a given period of time. Furthermore, bullish can describe the opinion of an individual or a specific group.

Simply put, bullish means that a trader or investor is of the opinion that the price of a security will increase from where it currently is. Concerning a financial market, a bull market implies that the overall market is in an uptrend , marked by higher highs and lower lows, and that it will keep rising.

When the bulls take charge of a market , it is characterised by high confidence , traders, and investors who are positive about trading and investment opportunities, optimism about generating profits, and a lower aversion for risk. In a bull market, bullish is an important strategy applied by traders to utilize the opportunity to enter the specific market and buy when prices are rising in order to sell when they are convinced that the market has reached the top of the current upward trend.

On the contrary, bearish describes a situation when markets follow a downward trend, and when traders expect prices will fall and securities will decline in value. Such an attitude may be the result of analysing chart patterns or price trends. A bullish opinion in this case has nothing to do with the company involved. Forex trading provides traders with the opportunity to trade in both bullish and bearish markets. This is because forex trading is always done in currency pairs , implying that when one currency is declining, the other one is rising, allowing a trader to benefit from a rising and falling market.

It is important to focus on bull and bear markets because they can determine the market trends of currencies. By being knowledgeable about market trends, traders are enabled to make informed decisions about risk management and to open and close positions.

The terms, bullish , bull , buying , or being long , are used interchangeably in forex trading. Generally, in forex trading, a chart pattern is a distinctive formation within a price chart, created by the movements of currency prices.

Chart patterns are the foundation of technical analysis and assist forex traders to predict what prices might do next, based on previous performances. Bullish chart patterns may form after a market downtrend, indicating a reversal of price movements. They are signals for forex traders to consider opening long positions to profit from any upward movements. There are numerous bullish chart patterns, such as bull flags , bull pennants , bull triangles , and inverted head and shoulders , to name but a few.

The focus of this article will only be on the following three bullish patterns: Ascending triangle pattern , falling wedge pattern , and bullish pennant pattern. A triangle pattern in forex is a consolidation pattern that occurs mid-trend, usually indicating that an existing trend will continue. The pattern is formed by drawing two converging trendlines , indicating that a price temporarily moves in a sideways direction. In the ascending triangle pattern , the upper trendline is flat and the lower trendline is ascending.

This pattern signals that buyers are more confident and aggressive than sellers as the price continues to make higher lows. The price moves to the flat upper trendline, and the more of this trend, the more the probability to eventually break through to the upside. This breakout is a signal for bullish traders to take a long position.

The falling wedge pattern , also referred to as the descending wedge, is a pattern that indicates future bullish momentum. It is a pattern formed when the price bounces between two downward sloping, converging trendlines. The descending wedge is considered both a bullish continuation and a bullish reversal pattern. It is a continuation pattern if it appears in an uptrend , implying that the upward price action will recommence.

As a reversal pattern, it appears in a downtrend , signalling that an uptrend is imminent. Both patterns are indicators of possibilities for buyers to enter long positions. A pennant is a continuation chart pattern, formed when a currency encounters a large upward or downward movement , followed by a brief consolidation , continuing to move in the same direction. Bullish forex traders see a breakout above the pennant as an opportunity to take advantage of the renewed bullish momentum in the market.

You have to understand that a bullish market spikes investor confidence and expectations that strong trading results will continue for a considerable time.

To predict when this trend might change is difficult. The ideal is to take advantage of the rising prices by buying stock early and selling them when they have reached their peak. Yes, but keep in mind that you run the risk of stocks prices going down after you have bought it. Price and trade data source: JSE Ltd All other statistics calculated by Profile Data.

All data is delayed by at least 15 minutes. Telephone number: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

Top 4 Brokers. Read Review. Comprehensive support and training, Global presence with a local feel, Uncompromising security, Advanced trading platforms. Forex Brokers. Forex Trading Platforms. Trading Platforms. Brokers by License. Brokers Types. Broker Reviews. Brokers to Follow.

Brokers by Account Type. Index Trading Platforms. Forex Trading South Africa. BEE Shares. Most Popular JSE Shares. Most Popular 20 Global Stocks. Build Your Own Share Portfolio. Open a FREE Trading Account.

Open a FREE Trading Account Menu. What does bullish mean in trading? Bullish in forex trading Forex trading provides traders with the opportunity to trade in both bullish and bearish markets.

The cookie is used to store the user consent for the cookies in the category "Other. Although it appears that the market is experiencing a Bullish attitude, this is on the contrary. This can continue up to a certain amount, or when the Bullish market is coming to an end. Generally, in forex trading, a chart pattern is a distinctive formation within a price chart, created by the movements of currency prices. Following the fall, the price does not go back up yet, instead forming a lateral trend. When buying Bullish, you want the market to keep rising before you sell the currency pair at the peak of the Bullish market. When the bulls take charge of a market , it is characterised by high confidence , traders, and investors who are positive about trading and investment opportunities, optimism about generating profits, and a lower aversion for risk.

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