When participating in the field of financial investment, the term Bullish has become familiar to investors. So, what is ” Bullish “? Why is it important and what trading strategy do we need when the market is in a ” Bullish ” state? The article below Forex Trading will help you answer the above questions. Let’s follow along!
General Overview of Bullish in Forex
Bullish can be simply understood as the trend of the market. When the market begins to move in a positive direction, traders often expect prices to continue to rise. This leads to higher buying demand than selling demand.
What is Bullish?
Bullish or Bull Market, is a term that refers to a market that is in a period of strong price increase. It lasts for a long period of time, accompanied by an increase in trading volume. Especially the large amount of buying.
A typical example of Bullish in the financial sector is Bitcoin – BTC. The price of BTC increased from $1,000 at the end of 2016 to $20,000 at the end of 2017. This created a huge price increase. Has become one of the classic cases in the cryptocurrency market.

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Summary of Concepts about Bullish
Bullish is simply a basic term to describe a market that is on the rise. In addition, this term can also be classified into the following specific concepts:
Bullish Engulfing
Known as a candlestick reversal pattern, Bullish Engulfing often appears when the candle has a strong bullish shape for a long period of time. Financial experts often observe that this pattern often appears after a series of red candles that indicate a previous price decline. Especially in double top and double bottom chart patterns
Bullish Engulfing is often considered a reversal signal in buying or selling in the market. This happens when the buying power begins to dominate from the selling side, which shows signs of a strong increase.
To recognize the Bullish Engulfing candlestick pattern, you can pay attention to the following three factors:
- The presence of a green candle, covering the entire portion of the previous red candle, indicates an increase in price.
- The pattern often appears at the end of a bearish sequence in the market.
- The reversal signal becomes stronger when the previous red candle has a Doji shape. In which the opening and closing prices of the candle are almost the same.


Bullish Kicking
This is a candlestick pattern that represents an upward price push. It is also a sign that sellers are in control of the market, especially in triple top pattern . However, in the constantly fluctuating environment of financial markets, it is impossible to guarantee the 100% of accuracy of this signal. The market can switch to the buying side at any time.
To recognize the Bullish Kicking pattern, you can pay attention to the following signs:
- Usually appears in a downtrending market.
- The first day is usually a black Marubozu candle.
- The next day will be a white Marubozu candle.
- There is a gap between the two Marubozu candles, black and white.
Bullish Piercing Line
This is one of the popular Japanese candlestick patterns. However, the Bullish Piercing Line candlestick pattern represents a transition from a downtrend to an uptrend. This pattern often appears at the end of a losing streak. Specifically, there is a bearish candle and then a bullish candle. Bullish Piercing is a second candle. It is at least half the length of the first candle.
If Bullish Piercing is too short, this could be a sign that investors are not confident in a market reversal. From there, it can indicate market hesitation instead of the Bullish Piercing model.
To recognize the Bullish Piercing Line candlestick pattern, you can pay attention to the following signs:
- Usually appears in a bearish market.
- The distance between bullish candles and bearish candles is not too far.
Bullish Counterattack Line
This pattern represents a market bottom change but occurs at a normal level.
According to experts, this is a model that represents a counterattack by buyers. However, it can also be reversed at any time. The meaning of this Bullish Counterattack pattern depends on the context of the surrounding candles.
If the market shows signals of this model, investors need to consider it before opening the next candle.
To recognize the Bullish Counterattack Line pattern, you can pay attention to the following signs:
- This pattern often appears in a downtrend.
- The first candle of the pattern is usually a bearish candle.
- The second candle needs to create a gap at the opening.
- The second candle is bullish and when closed is equal to the first candle.


3 common stages of the Bullish market
Bullish markets usually go through three stages:
- Initial phase: In a Bullish trend, the initial phase usually occurs in a short time. Usually at the end of the Bearish phase. However, at this stage, the price increase does not happen quickly but is accompanied by accumulation.
- Peak phase: After accumulating enough purchasing power and strong enough trading volume, the market will climb to its peak. This is the strongest development period in the Bullish trend. If the rate of increase is too rapid, this phase usually happens very quickly. However, if the rate of increase is steady, this phase may last longer.
- Depression phase: At this stage, price increases will slow down and the pace of increase will gradually decrease. Not until the selling force becomes stronger and pushes the price down. At this time, the Bullish market may change to another trend. This may be a Bearish trend.
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5 effective Trading Strategies in the Bullish Market
Below are 5 effective investment strategies when the market is in the Bullish phase :
Comment on the signs of the Bullish market
To recognize signs of a Bullish market, you can:
- Observe price declines and pullbacks with narrow amplitudes.
- Keep an eye on strong momentum indicators for price increases. For example, an increase in trading volume.
- Look for new lows and highs that are higher than previous lows and highs.
- Note the appearance of a number of Forex articles and comments in mainstream and social media.
Avoid Fear of Missing Out (FOMO)
- Allocate capital appropriately and buy proportionally in different periods. In order to avoid the risk of losing all capital due to the impact of FOMO.
- Avoid forcing yourself into the market just because prices are rising rapidly. Instead, trade based on your plan and clear investment goals.


Wait for a Pullback to trade
- Apply technical analysis knowledge to determine the appropriate backtest price range to buy.
- Give priority to buy orders (Long) instead of sell orders (Short). Because a strong buying force can lead to more rapid price increases.
DCA in technical analysis
Apply the Dollar-Cost Averaging (DCA) trading strategy within a specific price range. Maintaining a safe reserve is an important element of your investment management:
DCA doesn’t just help you buy in at a fixed rate over a period of time. It also helps avoid having to wait for the perfect buy point. Instead, it facilitates gentle and continuous buying. To help minimize the impact of price fluctuations.
At the same time, always keeping a safe reserve is indispensable. This ensures that you do not trade out all of your capital. Some unwanted situations can be handled. For example, sudden price fluctuations or investment opportunities that appear suddenly.
Set appropriate Take Profit and Stop Loss points
Consider determining your profit target before making a trade. Following a plan is an important part of your investment strategy.
At the same time, setting profit and risk stops is also an indispensable factor. Aims to protect investment capital and avoid falling into the trap of greed.


Conclude
Bullish is a trend in the market, where traders often predict that prices will continue to rise. This leads to greater buying demand than selling demand. The above article Forex Trading has summarized the definition and characteristics of the Bullish market. At the same time, provide necessary strategies when the market follows this trend. Research carefully to choose the trading strategy that best suits you.
Frequently asked questions
How are Bullish and Bearish different?
Bullish and Bearish are two relative terms: Bullish refers to an upward trend in prices. While Bearish refers to a downward trend in price.
What factors give rise to the Bullish trend in the market?
Bullish trends often arise when there is positive news and good economic data. Or growing profits of companies, creating confidence in market growth.
How to take advantage of the Bullish trend when investing?
To take advantage of the Bullish trend, you can consider buying assets with upside potential. Implement a trading strategy based on appropriate technical and fundamental strategies.