What is a Bull Market?
Bull Market
Forex Trading Glossary
Quick Answer: A bull market is a sustained upward trend characterized by rising prices, optimism, and strong demand. Bulls believe prices will continue rising and buy aggressively.
What is a Bull Market?
A bull market describes an extended period of rising prices and optimistic sentiment. In forex it usually reflects currencies backed by strong growth, rising rates, and healthy risk appetite.
Characteristics
- Higher highs and lows: Trend structure confirms buyers are in control.
- Supportive fundamentals: Improving economic data and hawkish central bank guidance attract capital.
- Positive sentiment: Volatility often compresses while dips are quickly bought.
Macro Confirmation
Compare currency strength indices, bond yields, and risk indicators to validate that flows support the bullish narrative.
Trading in a Bull Market
- Favor long setups and look for pullbacks into support.
- Trail stops to capture prolonged moves while protecting profits.
- Scale risk if macro catalysts turn negative or momentum slows.
- Remain disciplined; bull markets often end abruptly when fundamentals shift.
Related Terms
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