Bump and Run Reversal (Reversal) - ChartSchool - StockCharts

Bump and Run Reversal (Reversal) - ChartSchool -...

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18/2/2014 Bump and Run Reversal (Reversal) - ChartSchool - StockCharts.com 1/3 StockCharts.com - ChartSchool Learn more about Technical Analysis and Charting Terminology You are here: StockCharts.com » ChartSchool » Chart Analysis » Chart Patterns » Bump and Run Reversal (Reversal) Advertisement Bump and Run Reversal (Reversal) As the name implies, the Bump and Run Reversal (BARR) is a reversal pattern that forms after excessive speculation drives prices up too far, too fast. Developed by Thomas Bulkowski, the pattern was introduced in the June-97 issue of Technical Analysis of Stocks and Commodities and also included in his recently published book, the Encyclopedia of Chart Patterns . The pattern was originally named the Bump and Run Formation, or BARF. Bulkowski decided that Wall Street was not ready for such an acronym and changed the name to Bump and Run Reversal. Bulkowski identified three main phases to the pattern: lead- in, bump and run. We will examine these phases and also look at volume and pattern validation. 1. Lead-in Phase: The first part of the pattern is a lead-in phase that can last 1 month or longer and forms the basis from which to draw the trend line. During this phase, prices advance in an orderly manner and there is no excess speculation. The trend line should be moderately steep. If it is too steep, then the ensuing bump is unlikely to be significant enough. If the trend line is not steep enough, then the
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  • Spring '12
  • RamonBrunoTulibasJr.
  • bump, Thomas Bulkowski

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