Bump and Run Reversal Bottom / BARR Bottom
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A pattern where price gradually declines along a gentle trendline (lead-in), then accelerates sharply downward (bump), and finally breaks above the lead-in trendline to rise (run). It indicates a sharp reversal after panic selling has been exhausted. This is the inverse of the Bump and Run Reversal Top, signaling a reversal rally from the bottom.
Enter long when price clearly breaks above the lead-in trendline on a closing basis. Prepare as the decline slows within the bump and price approaches the trendline.
Project the distance from the bump bottom to the lead-in trendline upward from the trendline breakout point to determine the price target. Alternatively, the price level at the start of the lead-in is a reference.
Place a stop-loss slightly below the bump bottom or below the most recent swing low. If price re-crosses below the trendline, consider the pattern invalid.
Normal volume during the lead-in phase. Volume surges during the bump phase (panic selling). Increased volume at the trendline break upward enhances reliability.