StrategyBeginner#Market Structure#Basics
Bear Market
B
Definition
A period of broad price declines and pessimistic sentiment. A 20% move over at least two months is a common stock-index convention, not a universal rule for crypto, a single asset, or every time window.
Source reviewed
- SEC Investor.gov: Bear Market opens in a new tab
Supports: Defines the common broad-stock-index convention and makes clear that it is generally applied to an index over a time period.
- FINRA: Investment risk opens in a new tab
Supports: Explains market risk and that investments can lose value, supporting risk-capacity review instead of a timing claim.
Concept Diagram
Key Takeaways
1
A bear market is a descriptive label whose threshold depends on the stated market, index, and time window
2
The stock-market 20% convention is not a universal crypto definition or forecast
3
Price action and public flow data do not prove who is buying, selling, or informed
4
A decline can continue and does not make an asset suitable for a portfolio or ensure future value
Practical Example
A researcher calls a market bear only after stating the index or asset basket, start and end dates, price source, and threshold used. They then test whether their allocation still meets cash-flow and loss limits if prices decline further, rather than treating the label as an entry signal.
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Related Terms
Trading
Stop LossAn order instruction that activates when a specified trigger is reached. Its behavior, trigger source, availability, and execution price depend on the venue and order type; it cannot guarantee a maximum loss.
Strategy
V-RecoveryA descriptive label for a sharp decline followed by a rapid rebound in a selected price series. It does not identify buyers, prove a liquidity injection or forced selling, or predict that the recovery will continue.
Trading
Hedge (Cobertura)A transaction or position intended to reduce a defined exposure to price changes. It can reduce one risk while leaving or adding others, so it is not insurance or a guarantee against loss.
Macro
Risk-On / Risk-OffInformal market shorthand for periods when investors appear more willing to hold risky assets (risk-on) or more focused on reducing risk (risk-off). It is a description, not a standardized regime or a forecast.
Strategy
Bull MarketA period of broad price gains and optimistic sentiment. A 20% rise over at least two months is a common stock-index convention, not a universal rule for crypto, a single asset, or every time window.
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