Bullish vs Bearish

Lee Johnson
A free video tutorial from Lee Johnson
Investor/Educator
4.6 instructor rating • 1 course • 1,368 students

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03:00:09 of on-demand video • Updated October 2015

  • Learn the advantages of trading forex
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English [Auto] OK welcome back. In today's tutorial we're going to look at bullish versus bearish. Now we hear the term all the time in trading or investing. But what is being bullish versus being bearish. Well when we're bullish that means we expect the value of a currency or an equity or whatever it is we're trading to go up over a given time period. So if we're bullish we want to buy on gold long because we think the price will rise in value. Now the opposite is true for bearish if we're bearish. We expect the value of the currency to decrease in value over a given time period. In that case we want to sell or go short any time we are bearish on a currency pair. So bullish by long bearish sell we go short. So let's take a look at the chart. Look at the Euro dollar chart here on the one hour time frame and we can tell just by looking at price action that we are clearly in an up train. You know we've got price moving from the lower left to the upper right. We know we're in a strong trend. And what we want to do in this situation is we want to look for buy points. We want to look for opportunities to buy. So we want to look for consolidation points which means price is stabilizing and prepping for a move higher. We want to answer wait for a move higher wait for a consolidation point wait for a move higher wait for a consolidation point wait for a move higher. Now one thing that you'll notice we talked about in prior lectures that price is firmly above the moving average in all these cases. So if you're ever in doubt make sure you take a look at where price is in relation to the moving average. Now we were looking for point we would look for points to buy in this type of market and not necessarily sell we always want to go with the trend. So if we want indications of when that trend may be over again let's use our moving average as a reference when price starts to trend below the moving average that's going to be our to exit the trade. So let's look at and the other side. In this case we're looking at a bearish pair we're looking at the U.S. dollar Canadian dollar pair. So we've got price moving from the upper left to the lower right which means we're in a downward trend. Okay we want to look for price to consolidate and look for positions to into short trades move down price consolidation look for a place to enter the trade to go down. Okay in this case again we see Price firmly trending below our moving averages in a down trend so we would always want to look to sell a currency or go short in this type of market if we're looking for an opportunity to get out or if we want an indication of when the trend may be over. Then let's keep our moving average in mind as a reference when price starts to firmly trend above that then we know it's time to exit that particular trade. So there is a quick overview of bullish and bearish in and later lectures. We'll take a look at other tools in our tool box that we can use in conjunction with this basic analysis to prep us for our trades. Thanks for watching and I'll see you in the next video.