Logic of Bull and Bear Cycles
1. Bull Cycle:
• In an uptrend, each decline is often just a temporary correction, and the overall trend remains bullish.
• Typical mindset: After panic selling, prices quickly rebound, and selling off often presents a buying opportunity.
• Operational approach: Buy on dips, chase the rise.
2. Bear Cycle:
• In a downtrend, each rebound is often just a correction in the downward process, and the overall trend remains bearish.
• Typical mindset: Rebounds create a sense of 'hope for recovery', but new lows are often reached quickly.
• Operational approach: Reduce positions on rebounds, short sell.
📈 Bullish Market: Rise—Correction—Continue Rising
📉 Bearish Market: Decline—Rebound—Continue Declining
✅ In a bullish market, selling off presents a buying opportunity;
❌ In a bearish market, rebounds often present selling or short-selling opportunities.