It's not just bulls & bears!
There are 8 market states.
Bull
Volatile Bull
Bear
Volatile Bear
Kangaroo
Crab
Transitional (Bull → Bear)
Transitional (Bear → Bull)
Each one behaves differently and requires a different trading strategy.
Here's how to play them...
1. How to play a 📈🐂 Bull Market
A Bull Market has a steady uptrend with low volatility.
Suggested Action: ✅ Go Long.
Rationale: Strong upward momentum, clear trend, minimal noise.
2. How to play a 📈⚡🐂 Volatile Bull Market
A Volatile Bull Market has an uptrend with aggressive price swings.
Suggested Action: ⚠️ Go Long with tight stop-loss.
Rationale: The Market direction is bullish, but sharp pullbacks can trap overconfident traders.
3. How to play a 📉🐻 Bear Market
A Bear Market has a consistent downtrend with low volatility.
Suggested Action: ✅ Consider Shorting.
Rationale: Negative momentum makes it ideal for low-risk short entries.
4. How to play a 📉⚡🐻 Volatile Bear Market
A Volatile Bear Market has a downtrend with unpredictable spikes.
Suggested Action: ⚠️ Short with caution.
Rationale: The trend is bearish, but violent rallies can shake out weak positions.
5. How to play a 🦘📊 Kangaroo Market
A Kangaroo Market swings wildly with no clear direction.
Suggested Action: ⛔ Avoid new positions.
Rationale: Directionless chop = high risk, low reward. Better to wait.
6. How to play a 🦀⏸️ Crab Market
A Crab Market moves sideways in a tight, low-volatility range.
Suggested Action: 💤 Scalp or wait for a breakout.
Rationale: Ideal for range-bound traders. Everyone else? Sit tight.
7. How to play a 🔄🐂➡️🐻 Bull → Bear Transitional Market
A Bull → Bear Transitional Market has a weakening uptrend and a potential reversal brewing.
Suggested Action: 🚨 Tighten longs or hedge.
Rationale: Exit early or get ready to flip. Don’t get caught holding the top.
8. How to play a 🔄🐻➡️🐂 Bear → Bull Transitional Market
A Bear → Bull Transitional Market has a flattening downtrend and early signs of recovery.
Suggested Action: 👀 Watch for breakout / scale in slowly.
Rationale: Momentum is shifting. Time for early positioning or alerts.