Both the bull market and the bear market have a great impact on investors. When encountering different situations, investors can adopt different investment strategies. Therefore, it is very necessary to learn to analyze whether the market is a bull market or a bear market. Among them, a stock that has experienced a slow downward trend after a rapid and rapid rise is often referred to as a sudden rise and a slow fall.
Is rapid rise and slow fall a bull market or a bear market?
According to past phenomena, rapid rise and slow fall is a bear market, because the typical characteristic of a bear market is slow fall and sudden rise.
If the stock market rises slowly and falls sharply, it means that the floating profit will be sold when there is a bad news. Every sudden rise is an opportunity to sell. Moreover, the phenomenon of rapid rise and slow fall indicates large floating losses. Investors should not be reluctant to fight when encountering this situation. If you encounter favorable conditions, you won’t sell, and you may even add positions to dilute costs.
If stocks rise quickly and fall slowly, it means that the stock market is currently in a bear market or the stock has risen too much in the early stage. The real decline in a bear market is when the trading volume of individual stocks gradually shrinks after a sharp decline, and finally trades sideways at the bottom for a long time. Investors need to understand that the first typical characteristic of a bear market is to hold together for warmth, followed by rapid rises and slow falls.
The trend of rapid rise and slow fall is very common in stocks. The rapid rise in the early stage may be due to good news. After fermentation, it slowly begins to cool down, the stock price begins to correct, and finally it continues The Yin fell.
Once the stock market appears to rally and rise sharply but then fall slowly, investors need to take advantage of the rebound to stop losses in time for the weak stocks they hold. It should be noted that once the stock market rises and falls sharply, it means that the bull market is coming to an end.