Bull Market and Bear Market: How to Make the Best Choice
In Forex trading, the main deciding factor in choosing the direction of a trade is the direction of the trend. 
A characteristic of forex trading is that it's difficult to identify an existing trend; the influence of bulls and bears isn't as pronounced as on the stock market.
However, by using both fundamental and technical analysis to study the situation, it's possible to identify the prevailing sentiment.
Sometimes newcomers to the exchange ask, "When is it better to trade an uptrend or a downtrend?" It's best to start trading by opening a buy trade.
This means when an upward trend is observed and the exchange rate of the currency pair predominantly increases.
What is the difference between a bull market and a bear market?
A bull market is dominated by bulls, meaning those traders who open buy trades, thereby stimulating demand and causing further appreciation. This is the most optimistic group of traders, anticipating good news for the base currency in the currency pair.
Typically, an uptrend is present at such times , but one should not rush into buying trades; one should first determine how long the price has been rising and what the chances are of a reversal.
an overbought state , when it reaches its maximum and begins to move in the opposite direction.
A bear market can also be called a pessimistic market, as most players are hoping for a price decline and are placing sell orders.
The price of a currency pair is constantly falling under pressure from negative news and an ever-increasing number of sell orders.
Sometimes, it's more profitable to buy during a bear market. The key is to catch the moment when the price bottoms out and falls into the oversold zone. However, one should be extremely cautious and not mistake a correction for a trend reversal.
It's quite easy to recognize the current sentiment in the Forex market; simply look at the latest news feed and assess the current price movement.
technical analysis only .
Which option should you choose to open trades?
What plays a big role here is not whether the market is currently bearish or bullish, but how strong the trend is and how long ago the event that caused the current trend occurred.
The main signals for opening trades will be:
- A recent release of significant news that caused a price reversal or accelerated an existing trend.
- Significant volumes of transactions carried out on a selected currency pair or other asset confirm the prevailing trend
- Confirming readings from technical analysis indicators that support the existing trend.
And it doesn’t matter at all which direction the price is moving and who is currently dominant on the stock exchanges.
