In a bullish chart, prices are generally trending upwards, with higher highs and higher lows. Key indicators like moving averages are sloping upwards, and the Relative Strength Index (RSI) is often above 50, indicating strength in buying momentum. Bullish candlestick patterns such as bullish engulfing or hammer patterns may also be present, suggesting potential continuation of the uptrend.
Conversely, in a bearish chart, prices are trending downwards, characterized by lower highs and lower lows. Moving averages are sloping downwards, and the RSI is often below 50, indicating weakness in buying momentum. Bearish candlestick patterns such as bearish engulfing or hanging man patterns may appear, signaling potential continuation of the downtrend.
