Bear or Bearish in forex means the traders believe that the price are falling or going to fall, lower than the price before, or downtrend. for example, the rate of eur/usd now is 1.5010, if it’s going down to 1.4950 or lower, we can say that bearish.

A bear market is described as accompanied by widespread pessimism. Investors expect further losses are motivated to sell, with negative sentiment to eat in a vicious circle. The most famous bear market in history after the Wall Street crash of 1929 and lasted from 1930 to 1932, marking the beginning of the Great Depression. A mild, low-level long-term bear market occurred from about 1967 to 1982, the stagflation, energy crises in the 1970s, and the high unemployment in the early 1980s.

The prices fluctuate constantly on the open market, a bear market is not just a decline, but a significant drop in prices for a number of issues over a defined period. According to the Vanguard Group, “While there is no agreed definition of a bear market, a generally accepted measure is a price decline of 20% or more over a period of at least a two-month period.” However, no agreed definition of a bear market to clearly differentiate a primary market trend from a secondary trend.

Investors often confused bear markets with corrections. Corrections are much shorter lived, while the markets occur, contribute over a longer period with usually a larger extent of loss from top to bottom.