Reversal in the context of a strong bull market!

2023年9月8日

In this article, I would like to talk about a less-known pattern, Bump and Run.
The bump and run pattern is a reversal pattern that is formed after excessive speculation drives prices up too far, too fast. It is characterized by a sharp price increase (the bump), followed by a consolidation or pullback (the run).
Here are some of the key features of the bump and run pattern:

* The bump is a sharp price increase that is larger than the previous price movements.
* The run is a consolidation or pullback in the price of the asset.
* The breakout from the consolidation or pullback signals the resumption of the uptrend.
* The pattern is typically seen in the context of a strong uptrend.
* The pattern can be used to identify potential buying opportunities.

Here are some tips for trading the bump and run pattern:

* Use a stop-loss order to protect your downside risk.

The angle of the trend in the bump and run price pattern is typically between 30 and 45 degrees. This means that the price is rising at a moderate pace, not too quickly or too slowly. A steeper angle would suggest that the price is rising too quickly and is likely to be unsustainable, while a shallower angle would suggest that the price is rising too slowly and is not likely to continue.

NASDAQ: Comparing 2021 and 2023:
https://www.tradingview.com/x/IvRr4Mcv/

To learn more about this topic you can check my article for NVDA on Feb 11, 2022:
https://www.tradingview.com/chart/NVDA/YeT4Oe8R-Bump-and-Run-Reversal-Pattern/

Best,