In forex trading, the term “bears” refers to traders who adopt a bearish or negative outlook on the market or a particular currency pair. Bears believe that prices will fall or that the overall trend is downward.
Bearish sentiment can be driven by a variety of factors, including weak economic data, negative news events, or a change in investor sentiment. When bears believe that prices will fall, they may sell their positions or take short positions, anticipating further price declines.
Bearish traders may use technical analysis tools, such as trendlines, moving averages, and momentum indicators, to identify potential trading opportunities in a bear market. They may also use fundamental analysis to evaluate economic data and news events that may impact the currency pair.
The term “bears” is often used in contrast to “bulls,” who adopt a bullish or positive outlook on the market or a particular currency pair. The bears and the bulls are two sides of the market that interact with each other, determining the direction of prices and the overall sentiment among traders.