Bear market

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«It is less damaging to be wrong in acting, than to be irresolute and always hesitating.»
(Baltasar Gracian)

When we talk about a bear market, we refer to a negative market. In trading jargon, the word “bear” is used to indicate the negative phases of a market. A quite common say goes like this: “the bear’s claws have dipped down into the market“ which indicates that a market is under attack, and therefore that it is weak and downward oriented. A bear market is essentially made of lower lows and lower highs. A bearish movement starts from the top left corner of the chart and ends on the bottom right corner of the chart.

Just like in the following example.

Bear market primario.jpg
Bearish trend of Numtel Index, down from the high at 18.0605

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