Bump & Run Bottom Reversal

  • Usually appears in a downtrend
  • 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
  • A large reversed bump  that looks like a U-shaped basin is followed after the lead-in phase
  • A period of consolidation, short-term downtrend or small reversed bump can form after the completion of the larger reversed bump
  • 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
  • Effect: A breakout can occur  when the neckline has been broken that can send stock prices soaring.
Bump & Run Bottom Reversal