Rally

Filed Under » ,
Dictionary Says

Definition of 'Rally'

A period of sustained increases in the prices of stocks, bonds or indexes. This type of price movement can happen during either a bull or a bear market, when it is known as either a bull market rally or a bear market rally, respectively. However, a rally will generally follow a period of flat or declining prices.
Investopedia Says

Investopedia explains 'Rally'

A rally is caused by a large amount of money entering the market, bidding up the prices. The length or magnitude of a rally depends on the depth of buyers along with the amount of selling pressure they face. For example, if there is a large pool of buyers but few investors willing to sell, there is likely to be a large rally. If, however, the same large pool of buyers is matched by a similar amount of sellers, the rally is likely to be short and the price movement minimal.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Herd Instinct

    A mentality ...
  2. Sell-Off

    The rapid ...
  3. Turnaround

    The financial ...
  4. Santa Claus Rally

    A surge in the ...
  5. Technical Rally

    An upward ...
  6. Bull Market

    A financial ...
  7. Bear Market

    A market ...
  8. Whipsaw

    A condition ...
  9. Bear Market Rally

    A period in ...
  10. Sucker Rally

    A temporary rise ...

Articles Of Interest

  1. Dow Theory: The Three-Trend Market

    An important part of Dow theory is distinguishing the overall direction of the market. We''ll show you how it''s done.
  2. Forces That Move Stock Prices

    You can't predict exactly how stocks will behave, but knowing what affects prices will put you ahead of the pack.
  3. The Financial Markets: When Fear And Greed Take Over

    If these unpleasant emotions are allowed to influence your decision-making, they may cost you dearly.
  4. Digging Deeper Into Bull And Bear Markets

    Discover why it's important to know the characteristics of the two types of market conditions.
  5. Portfolio Management Pays Off In A Tough Market

    A clear rebalancing strategy is a critical component of portfolio management, particularly in tough economic times.
  6. Playing The Gap

    Learn how you can earn money by analyzing the disruptions in normal price patterns.
  7. This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  8. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  9. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  10. 5 Popular Portfolio Types

    Learning how to build these portfolios will increase your investing confidence and give you financial control.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center