Bump and Run Reversal Top / BARR Top
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 rises along a gentle trendline (lead-in), then accelerates sharply upward (bump), and finally breaks below the lead-in trendline to decline (run). It indicates a sharp reversal after speculative buying becomes overheated. Ideally, the bump height should be at least twice the distance from the lead-in trendline.
Enter short when price clearly breaks below the lead-in trendline on a closing basis. Prepare as the bump slows and price approaches the trendline.
Project the distance from the bump peak to the lead-in trendline downward 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 above the bump peak or above the most recent swing high. If price re-crosses above the trendline, consider the pattern invalid.
Normal volume during the lead-in phase. Volume surges during the bump phase. Increased volume at the trendline break enhances pattern reliability.