Bump-and-Run Reversal
Definition
A calm rise steepens into a speculative 'bump' — then price collapses back through the trendline.
Psychology
Price climbs calmly, then rockets, then falls back hard. The rocket phase was the warning.
Real-life analogy
💡 A sprint at the end of a marathon — spectacular, brief, and followed by a collapse.
Expected direction
down
Entry / Stop / Target
Entry: On the break back below the original (lead-in) trendline. · Stop: Above the bump's midpoint. · Target: Back to the lead-in trendline start, or bump height projected down.
Historical behaviour
Common in manias and parabolic runs.
Illustrative success rate
~65-75% follow-through down · Medium reliability
Common beginner mistakes
- • Buying the steepest part of the bump
Quick quiz — did you understand?
1. Is the Bump-and-Run Reversal generally considered bullish, bearish, or neutral?
2. After a confirmed Bump-and-Run Reversal, the expected direction is usually:
3. Which is a common beginner mistake with the Bump-and-Run Reversal?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.