A market characterised by sustained rising prices and optimistic sentiment.
In forex, a bull market for a currency means it is gaining value against other currencies.
In plain words
A bull market is a long period in which prices keep rising and most participants expect further rises. In share markets a rise of 20% or more from a recent low is a common rule of thumb for the label. In a currency pair, a bull market for one currency is a bear market for the other.
See it move
Candle 6 of 6: closed above where it opened
Why it matters
The label describes the backdrop: declines tend to be shorter than advances and sentiment is confident. It describes what has happened so far and carries no information about how long it lasts.
Worked example
An example only. The figures are round and invented for the arithmetic: they are not market prices.
An invented share index bottoms at 4,000 and later stands at 5,000.
- 1Rise = 5,000 − 4,000 = 1,000 points
- 21,000 ÷ 4,000 = 0.25 = 25%
- 325% is beyond the 20% rule of thumb
By the common convention this advance would be called a bull market.
A common mistake
A bull market is not in itself a reason to expect further gains. The label describes the rise so far, and sharp falls occur inside long advances.
Check yourself
Educational information, not investment advice or a recommendation to trade.