What is a Rally?
Definition of Rally: This is explained as a phase of constant rise in the cost of money, indexes, stocks and bonds. This can take place during a trend of bear or bull market. Generally, a rally will follow a period of declining or flat costs. A rise in the trend in cost direction during the main tendency bear market is regarded as the bear market rally. Detailed measurements are not distinct, but the rally of the bear market includes costs a raise in the order of ten to 20 percent. The rallies of the bear market may generally begin when the slightest expected and fade thereafter. A rally takes place when the investors with huge amount of money take a decision to make an entry to the market. As the number of sellers could not handle the purchasing pressure it causes a rise in prices. The deepness of the purchasers and how fast the sellers respond to the purchasing demand finds the rally’s magnitude and length. The propensity of the sellers to exaggerate the purchasing demand is the cause behind the termination of the rally. For instance, if there are many purchasers and few sellers there will be a big rally. On the other hand, if the purchasers and the sellers are matched at a time, rally will be short with few changes in the whole costs.