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Another scenario – bump & run pattern for POLONIEX:XRPUSD by AdonisB

Firstly idea spotted by @_Crypto_Maniac_ – im just adding some more details with below explanation for learning purposes

Bullish Bump and Run

The bullish bump and run is the same setup of the bearish pattern , just on the opposite side of the trade.

The bullish bump and run pattern starts with a standard bearish trend . Suddenly, a relatively big bearish trend impulse appears on the chart – the bump. After new lows are reached, the price action reverses, reaches the bearish trend line and breaks it upwards to start a fresh bullish move – the run.

5 Tips to Confirm a Bump and Run Chart Pattern

The structure of the bump and run pattern is very specific. Therefore, you should carefully examine the chart pattern before placing a trade.

1) Angle of the General Trend

First, you need to identify a trending stock. The inclination of the pattern should be anywhere between 30 and 45 degrees on the chart.

2) Angle of the Bump

The bump on the chart should definitely be steeper. After all, it is a trend impulse, right? The valid bump would have an inclination anywhere between 45 and 60 degrees on the chart.

3) Trading Volumes

Volumes are crucial for the validity of the bump and run formation. During the preceding trend, the volumes are usually low. Then the bump appears on the chart and volumes will tend to spike higher.

This helps the stock accelerate higher, creating the actual bump on the chart.

4) Bump and Run Pattern Sizes

Another crucial aspect of the bump and run structure is the size of the bump compared to the previous impulses.

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