Volatility describes how frequently and how dramatically asset prices change over a short period. A volatile market can feature sharp ups and downs regardless of the overall trend. While volatility can occur during both bull and bear markets, it does not define either. A bull market is characterized specifically by a consistent upward trajectory in prices over time. Volatility simply measures the intensity of price movements, not their direction. For example, a bull market can still have volatile days where prices drop temporarily, but the general trend remains positive. Confusing volatility with a bull market may lead to misjudging long-term opportunities based on short-term noise. Investors should understand that volatility is part of the market landscape, but it’s the long-term trend — not the daily swings — that defines whether the market is bullish or bearish.