As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
|
 44,200 or 41,750 by 01/01/2025 16,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 |
As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
| |
|
44,200 or 41,750 by 01/01/202516,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 | ||
Statistics updated on 8/26/2020.
For more information on this pattern, read
Encyclopedia of Chart Patterns
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The bump-and-run reversal bottom is a chart pattern that is a surprisingly good performer in both bull (ranking best for performance) and bear markets (ranking second best). It has a low break even failure rate and high average rise after the breakout. Discovered by Thomas Bulkowski in 1999.
Bump-and-Run Reversal Bottom
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The above numbers are based on 1,099 perfect trades. See the glossary for definitions.
Consult the associated figure on the right. The numbers cited should be used as guidance, not firm rules. For example, if the lead-in trendline drops by more than 45 degrees, it can be fine.
| Characteristic | Discussion | 
BARR Bottom
|
| Arithmetic scale | Use the arithmetic chart, not the semi logarithmic one because you will use it to measure vertical distances. | |
| Shape | A frying pan, tilted down, with the handle on the left. | |
| Trendline | During the beginning of the pattern, price often follows a down-sloping trendline that ranges from 0 to 45 degrees (rarely more). | |
| Lead-in phase | The handle portion of the frying pan is called the lead-in phase as it leads in to the bump phase. The chart to the lower right shows the location. | |
| Lead-in height | Measures from the trendline drawn across the highs to the handle low. Select the widest distance between the trendline and the low, measured vertically, in the first quarter of the chart pattern. The chart to the right shows an example. The height is between the two blue dots. | |
| Lead-in duration | At least a month (average is 35 days), but this varies widely. | |
| Bump phase | This is the frying pan. The down-sloping trendline deepens to 60 degrees or more. Price drops rapidly then levels out and turns around, forming a rounded turn. Price may pause at the 0 to 45-degree trendline (see Trendline above) before moving higher. The chart to the right shows the location of the bump phase. | |
| Bump height | Measured from the trendline to the lowest low, vertically, and it should be at least twice the lead-in height (but allow variation). The chart to the right shows the measure between the two blue dots. | |
| Uphill run | After the bump phase, price begins an uphill run. I show the run phase on the chart to the right. | |
| Volume | High during the start of the pattern, the bump start, and upward breakout. | |
| Confirmation | The pattern confirms when price closes above the down-sloping trendline. Do NOT accept any patterns which does not show a close above the blue trendline (after pattern's end). |
Consult the associated figure on the right.
| Trading Tactic | Explanation | 
The Measure Rule
|
| Measure rule | The highest high in the pattern (point A in the chart to the right) is the target. | |
| Breakout | Buy when price closes above the down-sloping 0 to 45-degree trendline, B. Alternatively, draw several trendlines parallel to and lead-in height below the top trendline (the green arrows at E). Buy when price fails to close below the next lower trendline and rises above the adjacent, higher trendline (C). | |
| Old high | When price rises to the old high (A, where the pattern begins) consider selling if the stock shows weakness. | |
| Throwback | Throwbacks hurt performance. The link to the left explains what to look for and this link discusses performance. | |
| Dual bump | A second downward bump occurs 12% of the time. The bump would begin at B, round downward before joining back with the trendline and staging an upward breakout. |
The chart on the right shows an example of a bump and run reversal bottom chart pattern.
Price begins the pattern at A and forms the lead-in phase followed by the bump phase. The lead-in height (C) measured vertically, is less than half the bump phase height (D), also measured vertically, as required.
The two measure from the trendline to the lowest low directly below (not to where the green arrows point, but the low price directly below).
Price breaks out upward (where the price bar and red line intersect in November) and throws back within a few days, but eventually fulfills the measure rule by climbing to B, near the launch price of A.
-- Thomas Bulkowski
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