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A "Bump-and-Run Reversal Bottom" is a technical chart pattern used in trading, primarily in the stock or forex markets. It's a type of reversal pattern that signals a potential shift from a downtrend to an uptrend. The pattern is typically associated with a significant change in the direction of price movement after a prolonged downtrend.
Here's how it works:
1. The "Bump" Phase:
The price experiences a sharp downward movement, reaching a significant low.
After the downtrend, a short-term rally occurs, which creates the "bump." This temporary rise is not necessarily a reversal but a part of the pattern that forms before the final bottom.
2. The "Run" Phase:
Following the bump, the price continues to decline and eventually reaches a final low, often at a level where support is found.
This bottom is typically formed by a sharp decline, followed by another brief rally, completing the "run."
3. The Reversal:
After the "run," the price starts to break out of the downward trend and reverses direction.
The reversal marks the end of the downtrend and the beginning of an uptrend as the market shifts sentiment from bearish to bullish.
The Bump-and-Run Reversal Bottom is essentially a combination of a "bump" (temporary rise) followed by a "run" (sharp decline), ending with a strong reversal upward. Traders look for this pattern to signal a potential buying opportunity as the price begins to trend upward after the reversal.
Key Points to Remember:
Volume: Volume typically increases during the reversal, confirming the breakout and new bullish trend.
Confirmation: A strong confirmation is often needed, like a break above resistance or moving averages, to ensure the reversal is genuine.
The pattern is especially valuable for traders who aim to buy low and sell high, and it provides an opportunity to capitalize on a major trend change in the market.
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Here's how it works:
1. The "Bump" Phase:
The price experiences a sharp downward movement, reaching a significant low.
After the downtrend, a short-term rally occurs, which creates the "bump." This temporary rise is not necessarily a reversal but a part of the pattern that forms before the final bottom.
2. The "Run" Phase:
Following the bump, the price continues to decline and eventually reaches a final low, often at a level where support is found.
This bottom is typically formed by a sharp decline, followed by another brief rally, completing the "run."
3. The Reversal:
After the "run," the price starts to break out of the downward trend and reverses direction.
The reversal marks the end of the downtrend and the beginning of an uptrend as the market shifts sentiment from bearish to bullish.
The Bump-and-Run Reversal Bottom is essentially a combination of a "bump" (temporary rise) followed by a "run" (sharp decline), ending with a strong reversal upward. Traders look for this pattern to signal a potential buying opportunity as the price begins to trend upward after the reversal.
Key Points to Remember:
Volume: Volume typically increases during the reversal, confirming the breakout and new bullish trend.
Confirmation: A strong confirmation is often needed, like a break above resistance or moving averages, to ensure the reversal is genuine.
The pattern is especially valuable for traders who aim to buy low and sell high, and it provides an opportunity to capitalize on a major trend change in the market.
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Daily#TMLLeague Info!
🏁
Follow the #LIGATML, the best league of traders in#cryptocurrenciesand #forextrading.
➡️
1st in the#Rankinghas a profit of $2,229, more than 55%.
➡️
2nd in the#Rankinghas a profit of $2,187, more than 43%.
➡️
2 of the traders have already received capital allocation.
➡️
2 Traders disqualified for burning more than 50% of the $5,000 credit account.
🥳
We want those traders on our #marketplace! #bitcoins #trading
#Write2Earn
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