A chart pattern that consists of a small white candlestick with short tails (or shadows) followed by a large black candlestick that eclipses or “engulfs” the small white one.

• Bearish Engulfing candles often signal a reversal from an uptrend to a downtrend, or at least a slowing down of an uptrend.
• Watch for these candles on intra-day 10-minute charts and daily charts.

A bear market is described as being accompanied by widespread pessimism. Investors anticipating further losses are motivated to sell, with negative sentiment feeding on itself in a vicious circle. One generally accepted measure is a price decline of 20% or more over at least a two-month period.” However, no consensual definition of a bear market exists to clearly differentiate a primary market trend from a secondary market trend. Investors frequently confuse bear markets with corrections. Corrections are much shorter lived, whereas bear markets occur over a longer period with typically greater magnitudes of loss from top to bottom. The most famous bear market in history was after the Wall Street Crash of 1929 and lasted from 1930 to 1932, marking the start of the Great Depression. A milder, low-level long-term bear market occurred from about 1967 to 1982, encompassing the stagflation economy, energy crises in the 1970s, and high unemployment in the early 1980s.

A steep and rapid increase in price followed by a steep and rapid drop in price. The rapid increase can be a result of either actual news or simply a wild rumor.

A price pattern in candlestick charting that occurs when a stock trades significantly lower than its opening, but rallies back to close either above or close to its opening price.

• The most reliable bottoming candles have long tails and close in the upper ¼ of the candle.
• Bottoming candles occur after a stock has been declining, possibly suggesting the market is attempting to determine a bottom.

A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or “engulfs” the previous day’s candlestick.

• Bullish Engulfing candles often signal a reversal from a downtrend to an uptrend, or at least a slowing down of a downtrend.
• Watch for these candles on intra-day 10-minute charts and daily charts.

Associated with increasing investor confidence, motivating investors to buy in anticipation of further capital gains. The longest and most famous bull market was in the 1990s when the U.S. and many other global financial markets grew at their fastest pace ever. In describing financial market behavior, the largest group of market participants is often referred to, metaphorically, as a herd. This is especially relevant to participants in bull markets since bulls are herding animals. A bull market is also described as a bull run.