Bull-Bear Line

The bull-bear line, also known as the 200-day moving average, is a technical indicator used by traders and investors to gauge the overall market trend. This line represents the average closing price of a financial asset, such as a stock or index, over the past 200 days. When the price is above the 200-day moving average, it is considered a bullish signal, suggesting that the market is in an upward trend. Conversely, when the price falls below this line, it is considered a bearish signal, indicating a potential downward trend.

Example

If the S&P 500 index is trading above its 200-day moving average, many investors would consider the market to be in a bull phase. However, if it falls below the line, it might signal the beginning of a bear market.

Key points

• The bull-bear line is the 200-day moving average used to determine market trends.

• Prices above the line indicate a bullish market, while prices below suggest a bearish market.

• Widely used by traders to assess long-term trends and market sentiment.

Quick Answers to Curious Questions

It is called the bull-bear line because it helps differentiate between bullish (upward) and bearish (downward) market trends.

Investors use it to identify potential buy or sell signals, with prices above the line indicating a possible buy (bullish) and prices below indicating a potential sell (bearish).

A price crossing above the line can indicate a shift to a bullish trend, while crossing below may signal a bearish trend.