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Bear / Bearish

A trader or outlook that expects prices to fall. "Bearish" means pessimistic about upside.

A bear is someone who thinks prices are going down. Bears swing their paws downward when they attack โ€” that's the origin of the term. Bears SELL (or avoid buying). "Bearish on GBP/JPY" means expecting it to fall. A "bear market" is a sustained downtrend with lower highs and lower lows. A "bearish candle" is a red candle that closed below its open. "Bearish divergence" is when price makes a higher high but an indicator like RSI makes a lower high โ€” a warning that upside is losing steam. Bears can make money faster than bulls because fear moves markets quicker than greed. But bearish positions also have a floor (price can only go to zero) while bulls theoretically have unlimited upside. In practice, neither side has an edge โ€” only the trend does.
Real trade example

Being bearish the Japanese yen (long USD/JPY / EUR/JPY) from 2022 to 2024 earned 4,000+ pips as the BoJ refused to raise rates while the rest of the world hiked aggressively.

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