How to recognize trends: The eternal battle between bullish and bearish

I spent years observing this power play in the markets, and let me tell you - understanding trends is not just "useful", it's a matter of financial survival. When I started trading, I ignored these signals and paid a heavy price for it. Now I can sense a trend even before it confirms.

The reign of the bulls

A bull market? It's that collective euphoria where everyone seems to be winning. Prices are climbing, optimism is overflowing, buyers are jostling. I've seen it so many times - this succession of ever-higher peaks that makes you believe it will never stop.

But beware! These periods of exuberance often hide the worst traps. When the buying volume explodes and even your hairdresser talks to you about investments, that's when I start to get nervous.

The dominance of the bears

On the contrary, the bear market - my favorite hunting ground. When fear sets in, and prices crash with this endless series of lower lows. I love those moments when panic takes hold of amateurs while the true predators position themselves.

The accelerating sales volumes, the media amplifying fear... These times reveal who is swimming naked when the tide goes out, as the saying goes.

The tools to identify trends

Moving averages? Too easy. When the price dances above the 200MA with an upward slope, the bulls control the territory. The opposite signals the reign of the bears.

That famous golden cross they all worship? I've seen it lie more often than one would think. Beware of signals that are too obvious - everyone sees them.

The RSI? An indicator that I sometimes use the other way around. When everyone is panicking over an RSI at 25, I start to accumulate. When it exceeds 75 and euphoria reigns, I take my profits.

The psychological game of reversals

It's the fascinating part - that moment when the trend exhausts itself. I've seen powerful bull markets collapse within hours after reaching major resistance. I've seen stubborn bears capitulate at the worst moment.

Divergences on the RSI are my best allies - when the price makes a new high but the indicator weakens, I'm already preparing my sell orders.

My advice for survival

Never become blindly partisan to a direction. I have seen too many stubborn individuals cling to their vision while their capital melted away. The trend is not your friend - it is your master until it betrays you.

The new trading platforms all promise you miracle indicators, but none will replace your instinct and discipline. I have learned that combining different time horizons often reveals the hidden truth of a trend.

Trust no one, especially not self-proclaimed experts. The market is a battleground where only the most adaptable survive.

Mastering these trends does not guarantee success, but ignoring them guarantees failure. Between bulls and bears, it is always the market that wins in the end.