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Bump and Run Reversal Pattern Works

This pattern is named a Bump and Run Formation. The name Bukowski will identify three phases as a lead-in, run, and bump. Bump and Run Reversal Pattern is visible on the large time frames. Basically, the first portion of the Bump and Run chart pattern will represent an uptrend from the pattern. The swing lowers as connected with a trend line as a lead-in trendline. There are two types of BARR pattern as Bearish Bump and Run starting with a bullish trend, and reverse the price action. Then comes a Bullish Bump and Run start with a bearish trend used to reverse the price action. The setup works on an intraday chart to search long and hard to find the pattern. Bump and Run Reversal pattern form an expensive speculation drive price. The price in advance is in an orderly manner with no excess speculation. It appears after a large price hike due to excess speculation. Then the second phase of a pattern the bump phase where the price increases compared to the first phase.

The trend line becomes steeper compared to the lead-in trendline. Traders will verify the bump pattern by checking the maximum height of the bump in relation to the lead-in. The distance from the highest point of a bump to the lead trend-line should be two times the distance from the highest high in the lead-in phase to the lead-in line. So when the price reaches a peak and starts to decline towards the trend line the chart begins to show the right side of the bump. The volume will expand after advance form on the left side of the bump. Then run phase starts when the price reaches the lead-in trend line.

Types :

This pattern has two types as bearish and bullish. Bearish bump and run will start with a standard bullish trend style. It is a big bullish trend where impulse appears on the chart. The line break so starts the run and we can catch the stock at this point. Here we can make again on trade. The next type is the bullish patterns have the same setup a bearish pattern on the opposite side of the trade. The bullish pattern starts with a standard bearish trend so a big bearish trend will appear on the chart as a bump. When it reached low price again it gets reverse. It reaches the bearish trend line and breaks upward to start the bullish move.

Attributes

Pattern type : No directional

Indication : bearish

Breakout confirmation : It is close below the lower trend line drawn across lows during the lead-in phase with the above trading volume.

The measuring : The target of the price is at the lowest point of the lead-in phase.

Volume : Volume is high at beginning of the phase and decreases throughout the pattern.

Conclusion

The pattern has a high probability of trade used by many professional traders. So it is applied to chart duration, weekly, or monthly. The pattern is an excellent indicator to identify speculative demand to end they allow traders to profit stock. So we can learn the stock chart and the advantage of technical analysis to the fullest. So check out our entire library of predictable chart patterns. It includes comprehensive descriptions also images to recognize chart pattern scenarios. The process will help me to become the best trader.