when did bull market start? identify the starting point of the bull market
- The bull market starts when
- Stock Market index fall daily, weakly forms lower lows on the chart
- Small up moves to trap the traders
- At a certain level, the crowd start a panic and starts to sell their holding
- These investors are in fear of lower price
- When everyone is in panic
- Then the professional traders start to buy the stocks
- Because of high selling pressure from retail investors supply is large
- It reduces the professional trader cost to purchase the stock due to the supply of stocks in the market
- Any panic selling creates an opportunity for the professional traders to buy the stocks
- To create the bull market the selling at its peak and it is called selling climax
- Selling climax occurs when retail investors sell all their holding stock in fear
- The news in the stock market will shake out all retail investors
- Professional traders always prepared to buy good quality stock
- They did their research work regarding management -growth and other parameters
- When the price is attractive they start accumulating all the floating stock from the market
- This creates the imbalance in supply and demand
- When the selling pressure ends the bull move starts
- There is no selling pressure professional traders buys all the stocks
- The price will fall when the professional traders start to sell but they sell their stocks at a higher price.
- Professional traders move the stock price high by selling their holding at a higher price this create the bull market
- Market moves up because there is no substantial selling to stop the up move
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