A bump and run reversal pattern forming on bitcoin
Updated
The bump and run reversal is both simple and effective. The bump and run reversal (or BARR) pattern indicates an existing trend’s reversal. This can occur on both short or long-term time frames.
A BARR pattern forms by drawing a single trend line that touches the lows, while an inverted BARR pattern would touch the highs. It is crucial to draw trend lines to the candle wicks’ tips, should any be present.
The run begins when the pattern breaks support (or resistance in which ever case) from the original lead-in trend line. Prices will sometimes hesitate or bounce off the trend line before breaking through. Once the break occurs, the run phase takes over, and the incline/decline continues. After the downside break (or upside )of the lead-in line, it may retest the former support level, now turned resistance(or support).
A BARR pattern forms by drawing a single trend line that touches the lows, while an inverted BARR pattern would touch the highs. It is crucial to draw trend lines to the candle wicks’ tips, should any be present.
The run begins when the pattern breaks support (or resistance in which ever case) from the original lead-in trend line. Prices will sometimes hesitate or bounce off the trend line before breaking through. Once the break occurs, the run phase takes over, and the incline/decline continues. After the downside break (or upside )of the lead-in line, it may retest the former support level, now turned resistance(or support).
Note
happening on chart live upside breakoutTrade closed: target reached
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