Bump & Run Top Reversal

  • Usually appears in an uptrend
  • 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 uptrend or a consolidation with an upward bias
  • A large bump  that looks like a U-shaped basin is followed after the lead-in phase
  • A period of consolidation, short-term uptrend or small bump can form after the completion of the larger bump
  • Connecting the lows from the lead-in phase to the lows of the period of consolidation/short-term uptrend/bump can form a neckline, which acts a major support
  • Effect: A breakdown can occur  when the neckline has been broken that can send stock prices downward. 
Bump & Run Top Reversal