1)Usually appears in a downtrend
2) Has a lead-in phase on the left side that appears like a handle of a frying pan; the lead-in phase is commonly a short-term downtrend or a consolidation with a downward bias
3) A large reversed bump that looks like a U-shaped basin is followed after the lead-in phase
4) A period of consolidation, short-term downtrend or small reversed bump can form after the completion of the larger reversed bump
5) Connecting the highs from the lead-in phase to the highs of the period of consolidation/short-term downtrend/small reversed bump can form a neckline, which acts as a major resistance
6) Effect: A breakout can occur when the neckline has been broken that can send stock prices soaring.
Source below.
tradertactics.wordpr...run-bottom-reversal/
2) Has a lead-in phase on the left side that appears like a handle of a frying pan; the lead-in phase is commonly a short-term downtrend or a consolidation with a downward bias
3) A large reversed bump that looks like a U-shaped basin is followed after the lead-in phase
4) A period of consolidation, short-term downtrend or small reversed bump can form after the completion of the larger reversed bump
5) Connecting the highs from the lead-in phase to the highs of the period of consolidation/short-term downtrend/small reversed bump can form a neckline, which acts as a major resistance
6) Effect: A breakout can occur when the neckline has been broken that can send stock prices soaring.
Source below.
tradertactics.wordpr...run-bottom-reversal/