The term “bearish” means a trader is pessimistic and that the price will go lower from where it currently is.
If you are bearish on a market, you believe that the market is going to fall.
The term is based on a bear swiping downwards with its paw.
The origin of the term is unclear, but legend says it’s from a painting by William Holbrook Beard called “The Bulls and Bears in the Market,” which is believed to depict the U.S. stock market crash of 1873.
Being bearish means you have a negative sentiment and are pessimistic about the future direction of price.
If you are “a bear” or “bearish“, it means that you have a negative sentiment and are pessimistic about future price direction.
For example, Jane is “bearish” on the euro, which means she thinks EUR will go down in price.
Bullish vs. Bearish
While being bearish means you are pessimistic that prices will go higher from where they currently are, being bullish is the opposite: you think prices will trade higher from where they currently are.
Bearish traders will look to take short positions. Bullish traders are looking to take long positions where they will profit if the market goes up from its current price.
If you liked this article, then please subscribe to our Newsletter Services for Forex Related updates. You can also find us on Facebook and can subscribe to our YouTube channel. You can also join our Telegram Channel for real-time trading analysis and discussion. Here is our service sitemap. If you have any confusion please leave your comments below.