Bull-bear line
Encyclopedia
Bull-bear line is the index average line that indicates bull market or bear market in stock market
. The 250-day moving average line of certain index for previous 250 trading days is treated to be the bull-bear line, which provides reference value for mid-term and long-term investment
. If the current index drops below the bull-bear line, some investors believe the market turn bearish from bullish. If the current index rises above the line, some investors believe the market turn bullish from bearish.
Financial analysts have different opinions on the bull-bear line. Some believed the 250-day moving average is not the "bull-bear line". According to Dow Theory
by Charles Dow
, an American
journalist
, bull market and bear market are defined by investor's mindset
. Bull market develops under extremely optimistic situations, while bear market develops under extremely pessimistic situations. There is no limitations on time duration for both markets. Investors should remind no one can expect the junction between bull and bear markets. This can only be known after the change happens.
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
. The 250-day moving average line of certain index for previous 250 trading days is treated to be the bull-bear line, which provides reference value for mid-term and long-term investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
. If the current index drops below the bull-bear line, some investors believe the market turn bearish from bullish. If the current index rises above the line, some investors believe the market turn bullish from bearish.
Financial analysts have different opinions on the bull-bear line. Some believed the 250-day moving average is not the "bull-bear line". According to Dow Theory
Dow Theory
The Dow theory on stock price movement is a form of technical analysis that includes some aspects of sector rotation. The theory was derived from 255 Wall Street Journal editorials written by Charles H. Dow , journalist, founder and first editor of the Wall Street Journal and co-founder of Dow...
by Charles Dow
Charles Dow
Charles Henry Dow was an American journalist who co-founded Dow Jones & Company with Edward Jones and Charles Bergstresser....
, an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
journalist
Journalist
A journalist collects and distributes news and other information. A journalist's work is referred to as journalism.A reporter is a type of journalist who researchs, writes, and reports on information to be presented in mass media, including print media , electronic media , and digital media A...
, bull market and bear market are defined by investor's mindset
Mindset
In decision theory and general systems theory, a mindset is a set of assumptions, methods or notations held by one or more people or groups of people which is so established that it creates a powerful incentive within these people or groups to continue to adopt or accept prior behaviors, choices,...
. Bull market develops under extremely optimistic situations, while bear market develops under extremely pessimistic situations. There is no limitations on time duration for both markets. Investors should remind no one can expect the junction between bull and bear markets. This can only be known after the change happens.