A bull market often referred to as a bull run, is marked by widespread investor buying, excess demand over the supply of goods and services, high levels of market confidence, and rising prices. Prices rising quickly may signal that most investors are growing optimistic about the price continuing to rise and may signal the start of a bull market.
As investor confidence develops, a positive feedback loop tends to draw in additional investment, leading prices to continue to rise. Investors and traders who believe that prices will improve over time are known as “bulls.”
Even in a bull market, there will be ups and downs, dips, and corrections. One could conclude in error that short-term downturn tendencies herald the end of a bull market. As a result, it’s essential to consider any potential trend reversal indicators from a broader perspective and in the context of lengthier time frames.
