Bullish Vs. Bearish.
1.1 Introduction 1.1 Option Classifications 1.2 Bullish Vs. Bearish 1.3 Possible Outcomes For An Option 1.4 Characteristics Of All Options 1.5 Managing An Option Position 1.6 Buying Calls 1.7 Selling Calls 1.8 Buying Puts 1.9 Selling Puts 1.10 Option Premiums 1.11 Intrinsic Value And Time Value.
3. Index, Interest Rate And Currency Options.
5. Option Taxation And Margin Requirements.
Investors who believe that a stock price will increase over time are said to be bullish. Investors who buy calls are bullish on the underlying stock. That is, they believe that the stock price will rise and have paid for the right to purchase the stock at a specific price known as the exercise price or strike price. An investor who has sold puts is also considered to be bullish on the stock. The seller of a put has an obligation to buy the stock and, therefore, believes that the stock price will rise.
Investors who believe that a stock price will decline are said to be bearish. The seller of a call has an obligation to sell the stock to the purchaser at a specified price and believes that the stock price will fall and is therefore bearish. The buyer of a put wants the price to drop so that they may sell the stock at a higher price to the seller of the put contract. They are also considered to be bearish on the stock.
Have right to buy stock, want stock price to rise.
Have right to sell stock, want stock to fall.
Have obligation to sell stock, want stock price to fall.
Have obligation to buy stock, want stock price to rise.

Bullish meaning in forex

For the experienced trader, these terms are more than familiar, but for the beginner, it’s important to define them:
In trading, there are two distinct types of mindsets while trading–the Bears (sellers) and the Bulls (buyers). To put it plainly, Bears think things are going to get worse (i. e. bearish) and therefore enter the market with a sell. After entering a bearish position in the market, you’re what is called " short ". Price movement from this point up or down will change a bear’s account value in increments of the chosen market.
Where Bears believe prices are going down, Bulls are the opposite–they think the prices are going up (bullish), and therefore enter the market with a buy. After entering a bullish position in the market, naturally, you are what is called " long ". Once again, price movement from this point up or down will change a bull’s account value in increments of the chosen market.
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Bearish and Bullish Definition.
Traders have long used the terms “bearish” and “bullish” to describe two things: their own feelings about a market and what they feel is a general mood in the market as a whole. For example, a trader or investor might say, “I’m bearish about crude oil going into the summer.” She means that she thinks the price of crude oil is likely to go down in the early weeks of summer.
If a trader says, “I’m bullish on gold because of the volatility in stocks,” it means that he thinks the price of gold is going to go up, perhaps as a response to uncertainty in the stock market, a phenomenon sometimes called the “flight to safety.” Some people think of gold as a safe place to put your money because of its historical value. Trading is full of colorful metaphors like “flight to safety,” “catching a falling knife,” and even the slightly sad “dead cat bounce.” Traders can get rather poetic when the markets are quiet.
Bull and bear can also be used to describe markets, particularly long-term market trends. The US stock market during the recovery from 2009 to 2015 increased nearly 200%, with the S&P 500 going from a low of 666 in March 2009 to highs over 2100 (as of this writing). That was the definition of a long-term bull market. Other long-term bull markets include the periods of 1925-1929 and 1993-1997.
The recovery that began in 2009 followed a sharp bear market from 2007-2009, marked by the financial crisis brought on by the subprime mortgage crisis and the overleveraging of debt-based derivatives like credit default swaps. Sometimes long-term bull markets can be followed by bear markets, the way the boom of the 1990s ended with the bursting of the dot-com bubble of 2000-2001.
The bull market of the 1920s ended not just with a bear market, but a crash followed by the Great Depression. It’s important to remember that bull and bear markets don’t necessarily correlate to good and bad economic conditions overall. More Americans became millionaires during the Great Depression than in any other period. And while investors saw their portfolios more than double in value in some cases between 2009 and 2015, the economic recovery was mixed. The US had a record streak of job creation, but wage growth has stagnated since the 1960s and both the US median and minimum wage were actually lower in equivalent dollars than in 1973.
As you can see, the terms “bearish” and “bullish” can be used to describe many things. You might even be bullish on certain stocks but bearish on the stock market overall. If so, binary options might offer a way to trade or hedge against the drop in stock indexes, while you invest in those stocks you think will go up.
Because Nadex lets you trade multiple markets from one account, you can be bullish on stocks and trade the up side of the Dow or DAX and at the same time be bearish about the dollar and trade the EUR/USD or dollar-yen forex pairs.
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Engulfing Candlestick Pattern.
TABLE OF CONTENTS:
Download Engulfing Bar indicator for MT4.
Engulfing Pattern Definition, Engulfing-Candlestick Pattern meaning. What Is “Engulfing Candlestick Pattern” in Forex?
The engulfing candlestick patterns , bullish or bearish are one of the easiest of candlestick reversal patterns to identify. Because these candlestick patterns are two-candlestick patterns, they are more valid and are often looked upon as reversal patterns. As with any candlestick pattern, the bullish or bearish engulfing pattern takes more priority depending on the time frame that they are formed on. Therefore, when looking to trade with the engulfing candlestick pattern, it is essential to first scan the charts from monthly, weekly and daily and then to the lower time frames. popualr formation for Price Action Trading ( ? What is PAT? )
What are engulfing candlestick patterns?
Engulfing candlestick patterns takes two candlesticks to be identified. A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle’s body. Conversely, a bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous candle’s body.
For more validity, if the engulfing candle’s high and low engulfs the previous candle’s high and low, the pattern is found to be more valid. The chart below shows different examples of various bullish and bearish engulfing candlestick patterns. In the example chart below, we also point out a false or an invalid engulfing pattern. It is false due to the fact that the open and close (the body) of the second candle does not completely engulf the open/close of the previous candle.
Figure 2 : Bullish and Bearish Engulfing Patterns.
Why are engulfing candlestick patterns formed?
An engulfing candlestick patterns are usually identified near the tops and bottom. They exhibit extreme market sentiment. In other words, a bullish engulfing pattern tells us that the buyers have overwhelmed the sellers in the market, thus engulfing the entire previous day’s open and closing prices. Conversely, a bearish engulfing candlestick pattern tells us of the sellers overwhelming the buyers and thus indicative of a drop in prices.
Engulfing candlestick patterns can be traded as a reversal candlestick pattern when found at the tops or bottom of a short term trend and validated by support or resistance levels. When an engulfing candle is formed within a trend, they are to be traded as a continuation pattern.
How to trade engulfing candlestick patterns?
The first step is in identifying the engulfing pattern within the context of the previous trend, of course not to forget t he main prevailing sentiment or the major trend .
In figure 3, we identify a bullish engulfing candlestick pattern that was formed right near the bottom of a short term down trend. We notice that right after the bullish engulfing candlestick pattern, it was followed by a strong Pin bar and subsequently prices started to push higher. In the same chart, we can also notice how the down trend started by a bearish engulfing candle formed right at the top. ( ? Pin Bar Definition)
As can be seen from the examples in this chart along, the engulfing candlestick patterns are strong patterns and when validated by other methods can offer great insights into taking positions based off these candlestick patterns.
Figure 3: Bullish Engulfing Candlestick pattern.
Another great way to trade the engulfing patterns is to scroll down to a lower time frame to fine tune the entry. For example, if you spot a bullish engulfing pattern on a daily chart, then scale into a H4 or H1 charts to pick out entries with lower risk and high probability.
In Figure 4, we identify a bearish engulfing pattern formed on the weekly charts. While most articles will tell you to place a sell order near the engulfing low with stops at the engulfing high, it is a rather crude way to trade. For example, the chart below shows how the bearish engulfing candle was formed. But notice a candle later the high that was made was higher than the high of the engulfing candle.
Figure 4: Bearish Engulfing on Weekly Charts.
This shows us yet again that when placing stops for trading engulfing candlestick patterns, due caution must be taken. Because it is well known that traders would attempt to place their stops just above the high of the engulfing candle, price can very easily push higher to stop out the traders before moving in the original direction.
To conclude, the engulfing candlestick patterns are two candlestick patterns and when formed near the tops or bottoms can indicate a short term change in sentiment. Depending on the price action, price could either start a new trend in the opposite direction or merely head towards making a correction to the previous trend.
As with any candlestick price action trading, engulfing candlestick patterns must be looked upon within the larger context of the markets and not in isolation.