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What is a bull market?

Bull markets are defined as periods of sustained investor confidence and market growth, as prices trend higher and indexes rise over time. These stretches are typically tied to economic growth and strength. When investor sentiment is “bullish,” investors are generally willing to take more risk. These extended periods of growth typically last for months but can last for years.

There are more technical definitions of a bull market, depending on which index, commodity, and other asset is being considered. As a general rule, however, bull markets tend to see stocks rise by 20% in response to a 20% decline, before eventually declining by 20% again to signal the end of the bull run. The longest bull run in S&P 500 history took place from March 2009 to March 2020, experiencing well over 300% growth over that time.

Bull markets present more obvious money-making opportunities than their inverse counterpart, the bear market. Several tried-and-true strategies – buy and hold, increased buy and hold, and retracement additions among them – are favored by traders in bull markets, but there are other profitable options to be enjoyed.

Analyzing charts and understanding the features of a bull market can help traders make timely and profitable trades. Traders will want to buy into a bull market early, then sell as the market is peaking to maximize returns. While these features can be difficult to identify, there are ways to exploit these patterns efficiently and intelligently. Tickeron’s Pattern Search Engine uses the power of artificial intelligence to track 19 different bullish patterns, with each page offering success rates based on the A.I.’s confidence level and the distance (%) to the target price.

One Bullish pattern is the Channel Up. This pattern shows a clearly defined uptrend and describes the behavior of the price contained between upward sloping parallel lines. Higher highs and higher lows characterize this price pattern. Traders could go long on the security when the price reaches the support line and exit when the price reaches the resistance line. When it breaks above the resistance line, traders can choose to buy the security. As with all the cases above, traders should look for other signs to confirm the pattern before choosing to short the security when the price breaks below the support line.

Investors love the profitability of a bull market – A.I. tools can help identify even more opportunities for gains when the market is performing well.

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