BARR bottoms

As of 08/01/2025

Indus: 43,589 -542.40 -1.2%

Trans: 15,104 -342.04 -2.2%

Utils: 1,108 +6.87 +0.6%

Nasdaq: 20,650 -472.32 -2.2%

S&P 500: 6,238 -101.38 -1.6%

YTD

+2.5%

-5.0%

+12.7%

+6.9%

+6.1%

Targets Overview: 07/30/2025

45,300 or 43,200 by 08/15/2025

16,300 or 14,800 by 08/15/2025

1,150 or 1,050 by 08/15/2025

21,700 or 20,500 by 08/15/2025

6,500 or 6,200 by 08/15/2025

Chart Pattern Indicator:

on 7/30/25

As of 08/01/2025

Indus: 43,589 -542.40 -1.2%

Trans: 15,104 -342.04 -2.2%

Utils: 1,108 +6.87 +0.6%

Nasdaq: 20,650 -472.32 -2.2%

S&P 500: 6,238 -101.38 -1.6%

YTD

+2.5%

-5.0%

+12.7%

+6.9%

+6.1%

Targets Overview: 07/30/2025

45,300 or 43,200 by 08/15/2025

16,300 or 14,800 by 08/15/2025

1,150 or 1,050 by 08/15/2025

21,700 or 20,500 by 08/15/2025

6,500 or 6,200 by 08/15/2025

Chart Pattern Indicator:

on 7/30/25

Bulkowski on the Bump-and-Run Reversal Bottom

For more information on this pattern, read Encyclopedia of Chart Patterns, 3rd Edition. The book gives a complete review of the chart pattern, compared to what is described below.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

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: Important Bull Market Results

The above numbers are based on 1,099 perfect trades. See the glossary for definitions.

Bump-and-Run Reversal Bottom: Identification Guidelines

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).

Bump-and-Run Reversal Bottom: Trading Tips

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.

Bump-and-Run Reversal Bottom: Example

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.

Bump-and-Run Reversal Bottom: 10 Examples