Tag Archives: bear

Understanding Market Structure Bulls versus Bears

There are only two big forces that drive the whole market.
1. Fear
2. Greed

Both of these induce each other too. For example: Fear of losing an opportunity to make more money. That is Greed inducing Fear. Another example is Fear of losing profits made so far. That is Greed inducing Fear.

Markets are run by Humans and hence these psychological factors are always present in a market. Markets as a whole represents the emotional and psychological state of its participants. These participants can be:
1. Retail Traders
2. Institutional Traders
3. Retail and Institutional Long term holders
4. Market Makers

These factors make markets go up and down. As human nature is so predictable and often very similar, markets follow almost same cycle again and again in which BULL and BEAR patterns emerge. Below are 2 charts which represent these cycles.

Understanding Market Structure Bulls versus Bears

Similar to above

2015-09-06_08-42-10

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