Commonly used to describe the stock market, the concept of Bull Market is also applicable to other markets including bonds, real estate, commodities, and currencies.
Market conditions can be considered to be a Bull Market when majority of market prices are constantly rising over a long period of time.
No definite measuring tool, however, can be used to identify a bull market. In essence, a bull market is characterized when prices go up by at least 20% after a price drop of the same value and before another price drop of the same portion. Since the price drop after the price rise is considered, a bull market can only be recognized after it occurred.
Traders can capitalize on a Bull Market by applying the following trading strategies:
-Buy and Hold
-Increased buy and Hold
-Full Swing Trading