Bearish

Bearish is the downward counterpart of bullish; the image is a bear swiping its paws down. A bearish candle closed below its open, a bearish trend makes lower lows and lower highs, and a bearish trader expects prices to fall.

Two misreadings are common. The first is treating one red candle as a bearish market. A single candle is a moment; a market is bearish when its structure keeps confirming it. The second is assuming that something that has fallen a lot must now be “too low” and due to bounce. Downtrends can run much longer than feels reasonable, and buying against them is a frequent source of losses.

In forex the word has a twist: if you are bearish on USD/JPY, you expect the yen to strengthen against the dollar, not something to fall in absolute terms.

In the Sky Trade terminal a bearish view is expressed with the red Sell button (or the S / ↓ key), which opens a lower trade. Context matters: a bearish signal right at strong support has a harder job than one breaking below it. The article on market structure explains how to read trends.