What is a bull market
A bull market is a long period in which the prices of a market, an index or an asset keep rising, with buyers mostly in control.
The term is used for shares, stock indices, metals, crypto and sometimes currencies. "Bull run" means the same thing in everyday speech. It is often used for a fast or dramatic rise, especially in crypto.
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Formal definition and edge cases
There is no single official threshold. Experienced traders and analysts usually work with these points:
- Measured from a trough. A bull market starts at the lowest point after a fall, not at the moment the media starts using the word. The start is usually confirmed only later.
- Percentage convention. Many sources call a rise a bull market once prices have gained a set percentage from the recent low. That percentage differs between sources, so check which definition a report uses.
- Duration. A rise lasting a few days or weeks is usually called a rally, not a bull market. The term implies months or longer.
- Structure. On a chart, a bull market shows higher highs and higher lows. See Technical analysis.
- Pullbacks inside a bull market. A drop that does not break the uptrend is a market correction or a consolidation, not the end of the bull market.
- Secular vs cyclical. A secular bull market lasts many years. A cyclical one follows the business cycle and can sit inside a longer bear trend.
- Nominal vs real. In high-inflation economies, prices can rise in local currency while falling in real terms or in US dollars. Some analysts would not call that a true bull market.
Worked example (hypothetical)
Imagine a stock index that falls for most of a year and then makes a clear low.
- Over the following months the index rises and sets a series of higher highs and higher lows.
- It then passes the percentage gain from the low that the reporting source uses as its threshold.
- Analysts now describe the period since the low as a bull market. They date its start back to the low, not to the day the threshold was crossed.
- Later the index drops for a few weeks but stays above its previous swing low. Reports call this a correction within the bull market.
- Eventually it falls far enough from its peak to meet the source's definition of a bear market. The bull market is then said to have ended at that peak.
Bull vs bear market
| Bull market | Bear market | |
|---|---|---|
| Direction | Prolonged rise | Prolonged fall |
| Chart structure | Higher highs, higher lows | Lower highs, lower lows |
| Typical mood | Optimism, risk-taking | Fear, selling |
| Common risk | Overconfidence, asset bubble | Catching a falling knife |
Where you see the term
- News and headlines: for example, "index enters bull market" or "gold extends its bull run".
- Analyst and bank reports: to describe the current phase of a market, often with the threshold they use.
- Trading platforms: MetaTrader and similar platforms do not label markets as bull or bear. Traders judge this from the chart, trend lines and indicators.
A rising market does not mean a trade will make money. Leveraged CFD and forex trading can lose money fast in any market phase. See Risk management.
Related terms
Bear market · All-time high · Market correction · Asset bubble · Dead cat bounce · Capitulation · Contrarian investing · Stock indices · Trading glossary
Frequent questions
What does bull market mean in simple words?
It is a long period when prices keep going up.
Is a bull run the same as a bull market?
Mostly yes. "Bull run" is informal and often suggests a fast rise.
When does a bull market end?
It ends at the peak before a fall that meets the definition of a bear market. That is known only after the fall has happened.
Why "bull"?
A bull attacks by thrusting its horns upward, so the animal came to stand for rising prices. A bear swipes downward, so it stands for falling prices.
Can a market be in a bull market and still fall?
Yes. Short drops and corrections happen inside most bull markets without ending the uptrend.