What does Bullish mean? | Definition and Examples


Bullish refers to positive market sentiment characterized by a significant increase in share prices of 20% or more following a market decline, signalling optimism and potential profitability for investors.

Bullish in a nutshell

  • Bullish indicates that the market is positive and stock prices have risen by 20% or more after a decline.
  • After the 2008 recession, between 2009 and 2020 marked a long-lasting bullish streak worldwide, including NASDAQ, DOW JONES and Indian markets.
  • Trading binary options successfully in a bullish market requires strategic timing, technical indicators like the RSI, being informed, learning from experienced traders and analyzing market sentiment.

What is the origin of the “Bullish” theory?

When we have a close look or try to assimilate the knowledge about “Bullish”, stock exchanges and the share market, we may confront two animals, the bull and the bear, jokes apart. First, naturally, a query may arise why in this hard-core economic and social perspective, the animals are tortured. 

We should take the two animals as metaphors of upward and downward movements of the stock exchange. The upward trend is depicted as a bull, and the downward is depicted as a bear. The bull confronts its opponent at high speed and hits its target with its horn, and tries to lift it upward. 

Generally, the attacking movement of a bear is downward; the bear’s ultimate goal is to lie down to his opponent.

What factors contribute to a bullish market?

There are many factors that contribute to a bullish market. As we discuss, prior society progresses on economic advancement. The market trends depend on the increasing and decreasing prices of shares, mainly equity investments. The increase must be at least 20% and above after a heavy market fall, which has to be declared by the respective stock exchange. 

The upward trend of share value makes the market bullish. It is a boon to the share traders, investors, and the institution or companies whose shares are enlisted in the stock exchange. The bullish market is also associated with an overall improvement in the country. Profound research on market study reveals that to make a market bullish, the GDP (Gross Domestic Product) must be going up, and unemployment is less. 

Money must be regulated properly by the government. Besides, people must have monetary resources to invest in shares. Mass awareness about the stock market and investments are also an important part. People should be eager and have the confidence to invest their hard-earned money in share trading. All is about a seesaw of supply and demand. There will be more demand for investments and fewer opportunities, which are the shares.

It is difficult to evaluate when the market will turn its movement upward, but all about probability. We must be optimistic that when the above-mentioned criteria are fulfilled, we can hope for the expected moment. 

This will be the perfect time to invest in shares to gain more profit. To sustain the bullish market, people must keep investing rather than selling their shares and holding the shares long term.

What did the bullish market in the 2010s look like?

The massive bullish market of the 2010s started after the worldwide recession in 2008, when the entire civilized county came forward and jointly tried to overcome the distress. But it took a long time to stabilize the great loss. From 2009 to 2020, the market touches another level, and this may consider the longest bullish phase.

In the month of March of the year 2009, NASDAQ and DOW JONES share trading started recovering but at a very low pace. But the stock market analysts consider this as the start of a bullish market.

The Indian economy was also facing topsy-turvy in the global wave of recession. Sensex and Nifty also took time to recover. In twelve years, the market jumps to seven times, from around 8000 Sensex index to above 56000 Sensex index. 

According to the stock market analysts, there were ups and downs, but they were very hopeful for the recovery speed. But the Indian economy will never forget the year 1992; this was the greatest bullish period in Indian economic history. However, it lasted for a very short time. After the revelation of the Harshad Mehta scam, the market fell down at once. 

The good and bad phases of the markets will continue on their course; for a sustainable economy, the money market must keep rolling, and people at large must be motivated through good investments.  

How to trade bullish markets with Binary Options?

To trade binary options in a bullish market successfully, it is important to use timing and strategy. If you are expecting the market to rise and are confident about a particular asset, you should consider investing. It is possible to profit from bullish markets if you pay attention to the most important aspects. Here is a detailed guide to navigate bullish markets effectively:

  • Use Technical Indicators: Technical indicators are crucial in understanding market sentiment and predicting trend directions. Analyzing price charts, these indicators give insight into traders’ perceptions and help you make informed decisions based on developing market conditions.
  • Stay Informed and Updated: Stay informed about market trends regularly by reading magazines, news articles and other relevant sources. It allows you to align your trading strategies with the current market flow.
  • Learn from experienced traders: Continuous learning is essential in the fast-paced world of binary options trading. Gain insights from experienced traders through interviews, articles and other reliable sources. Knowing this will improve your ability to interpret different market trends, both bullish and bearish.
  • Subscribe to Newsletters: Newsletters provide valuable information about other traders’ thoughts. If you understand the sentiment of the trading community, it can influence your binary options decisions.
  • Connect the Dots: Analyze and gather information from various sources. By connecting the various dots, you can identify market sentiment even from ordinary news. For example, a positive company sentiment often signals a bullish market sentiment.

By following these simple steps and keeping up to date, you can better understand market sentiment, make informed decisions and optimize your binary options trading in bullish markets.

What is the best Indicator for bullish markets?

The Relative Strength Index (RSI) is a reliable indicator of bullish markets. It is a technical tool that analyzes recent price changes and the volume of assets traded. RSI values range from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions.

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About the author

Marc Van Sittert
Marc Van Sittert is an experienced Binary Options Trader and coach who is originally from South Africa. He started his career in 2014 by trading old-school Binary Options online. His main focus is on short-term contracts with 60-second trades.

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