What is the bump and run reversal?
The bump and run reversal is both simple and effective.
The bump and run reversal (or BARR) pattern indicates an existing trend’s reversal.
This can occur on both short or long-term time frames.
The Lead-In
The gradual slope forms where price is rising or falling and forms a trend.
The price increases at an average pace during the lead-in, without excess speculation.
The Bump
Identify the bump within the BARR by a steep increase/decrease in the current trend direction.
The bump creates its own demand line, which deviates progressively further and further away from the lead-in line.
This forms the left side of the bump.
The Rollover
After the excessive speculation fizzles, price action begins to top.
At times, a quick double top or a series of big upper wicks may form. A break (and close of the breaking candle) in the bump demand line confirms the beginning of the rollover.
Price action then declines back toward the original lead-in line and forms the right side of the bump.
The Run
The run begins when the pattern breaks support from the original lead-in trend line.
Prices will sometimes hesitate or bounce off the trend line before breaking through.
Once the break occurs, the run phase takes over, and the incline/decline continues.
After the downside break of the lead-in line, it may retest the former support level, now turned resistance.
Conclusion
If this pattern can confirm the run by providing a volume supported bounce, Then we have a high likelyhood to see the price of $63800 again.
However if this pattern gets invalidated by dropping back below the support line then we might see a small downtrend.
The bump and run reversal is both simple and effective.
The bump and run reversal (or BARR) pattern indicates an existing trend’s reversal.
This can occur on both short or long-term time frames.
The Lead-In
The gradual slope forms where price is rising or falling and forms a trend.
The price increases at an average pace during the lead-in, without excess speculation.
The Bump
Identify the bump within the BARR by a steep increase/decrease in the current trend direction.
The bump creates its own demand line, which deviates progressively further and further away from the lead-in line.
This forms the left side of the bump.
The Rollover
After the excessive speculation fizzles, price action begins to top.
At times, a quick double top or a series of big upper wicks may form. A break (and close of the breaking candle) in the bump demand line confirms the beginning of the rollover.
Price action then declines back toward the original lead-in line and forms the right side of the bump.
The Run
The run begins when the pattern breaks support from the original lead-in trend line.
Prices will sometimes hesitate or bounce off the trend line before breaking through.
Once the break occurs, the run phase takes over, and the incline/decline continues.
After the downside break of the lead-in line, it may retest the former support level, now turned resistance.
Conclusion
If this pattern can confirm the run by providing a volume supported bounce, Then we have a high likelyhood to see the price of $63800 again.
However if this pattern gets invalidated by dropping back below the support line then we might see a small downtrend.
Downward target of about $59000 will be the lowest point, Otherwise the whole market structure changes.