Consult the associated figure on the right. The numbers cited should be used as guidance, not firm rules. For example, if the lead-in drops by more than 45 degrees, it can be fine.
Shape A frying pan, tilted down, with the handle on the left.
During the beginning of the pattern, price often follows a down-sloping that ranges from 0 to 45 degrees (rarely more).
Lead-in phase The handle portion of the frying pan is called the lead-in phase as it leads in to the bump phase.
Lead-in duration At least a month (average is 35 days), but this varies widely.
Bump phase This is the frying pan. The down-sloping deepens to 60 degrees or more. Price drops rapidly then levels out and turns around, forming a rounded turn. Price may pause at the 0 to 45-degree (see above) before moving higher. The chart to the right shows the location of the bump phase.
Bump height Measured from the to the lowest low, vertically, and it should be at least twice the lead-in height (but allow variation). The chart to the right shows the measure between the two blue dots.
Uphill run After the bump phase, price begins an uphill run. I show the run phase on the chart to the right.
High during the start of the pattern, the bump start, and upward breakout.
Confirmation The pattern confirms when price closes above the down-sloping . Do NOT accept any patterns which does not show a close above the blue (after pattern's end).