Bump and Run Reversal

LearnOct 23, 2025
Timothy Cahill
Bump and Run Reversal

What is a Bump and Run Reversal (BARR) Pattern?

A Bump and Run Reversal (BARR) is a three-stage reversal pattern where price trends cleanly along a trendline, then accelerates into a steep blow-off move, and finally reverses by breaking back through that original trendline.

Think of it in three acts: the lead-in (orderly trend), the bump (the parabolic blow-off), and the run (the reversal back through the trendline). When the trendline finally breaks, the prior trend is done.

What Does a Bump and Run Reversal (BARR) Pattern Indicate?

A BARR signals a trend that got too steep, too fast — and is about to flip. The bump is the tell: late buyers (or sellers) pile in at the worst possible moment, creating an unsustainable move away from the original trendline.

The mechanics:

  • The bump shows urgency and poor price acceptance at the extreme. Traders are chasing.

  • Once the move stalls, the trapped chasers start bailing. That's the run.

  • When price breaks the lead-in trendline, the original trend structure is officially broken.

📌 Key Takeaway: The pattern is a story of overextension. Steep moves don't sustain — they correct violently.

Is the Bump and Run Reversal (BARR) Pattern Bullish or Bearish?

It's both — depending on the trend that precedes it. A BARR that forms after an uptrend is bearish. One that forms after a downtrend is bullish.

  • Bearish BARR (top): Uptrend → bump pushes higher → run breaks down through the rising lead-in trendline.

  • Bullish BARR (bottom): Downtrend → bump pushes lower → run breaks up through the falling lead-in trendline.

The direction of the break determines the trade direction. Don't try to front-run it.

How to Identify a Bump and Run Reversal (BARR) Pattern?

Look for three things in this exact order: a clean lead-in trend, a visibly steeper bump that pulls away from the trendline, and a run that breaks the original line.

If any of those three pieces is missing, the pattern isn't a BARR.

  • Lead-in: Orderly trend with multiple touches respecting a single trendline. At least two clean swing points.

  • Bump: Sharp acceleration with a clearly steeper slope than the lead-in.

  • Run: Reversal move that returns toward the lead-in trendline and breaks it with a decisive close — not a wick.

🔥 Pro Tip: If you have to convince yourself the bump is steeper than the lead-in, it isn't. Real BARRs are visually obvious.

How to Draw a Bump and Run Reversal (BARR) Pattern?

Anchor the lead-in trendline first. Mark the bump extreme. Then watch for the run to break the line.

  1. Draw the lead-in trendline using at least two clean swing points. Higher lows for an uptrend lead-in. Lower highs for a downtrend lead-in.

  2. Mark the bump extreme — the bump high for a bearish setup, the bump low for a bullish setup. This is your reference for both stop placement and measured move calculations.

  3. Extend the lead-in trendline forward. Watch the run phase as price comes back toward the line.

The break of the lead-in trendline is the trigger. Everything before that is setup.

How to Trade a Bump and Run Reversal (BARR) Pattern?

Wait for the run phase to break the lead-in trendline on a candle close — then enter in the direction of the break, or wait for the first retest of the broken line.

Two valid entry styles, depending on your risk tolerance:

  • Bearish BARR: Short on a close below the rising lead-in trendline. Or sell the first retest that holds as resistance.

  • Bullish BARR: Long on a close above the falling lead-in trendline. Or buy the first retest that holds as support.

  • Confirmation rule: Decisive candle close beyond the trendline. Wicks through the line don't count — that's how you get faked out.

⚠️ Warning: The break-and-go entry catches the full move but eats more failed breaks. The retest entry has a tighter stop and cleaner risk — but you'll miss some moves that never come back. Pick the one that fits how you actually trade.

What is the Profit Target for a Bump and Run Reversal (BARR) Pattern?

Use a measured move: take the vertical height of the bump, then project that distance from the trendline break point in the direction of the reversal.

Examples in real numbers:

  • Bearish example: Bump high at $120, trendline break at $110 → bump height is $10 → target is $100.

  • Bullish example: Bump low at $80, trendline break at $90 → bump height is $10 → target is $100.

🚀 Quick Tip: Scale out at the measured move target. Take partial profits, trail the rest. Greed has eaten more BARR trades than any reversal failure ever has.

Where to Put a Stop Loss on a Bump and Run Reversal (BARR) Pattern?

Stop goes beyond the bump extreme. That level is the failure point — if price reclaims it after the trendline break, the pattern is invalid and you need to be out.

  • Bearish BARR: Stop above the bump high.

  • Bullish BARR: Stop below the bump low.

💡 Trader Truth: A wider stop with proper position sizing beats a tight stop you keep getting wicked out of. Size the trade so the bump-extreme stop matches your -1R risk.

What Happens After a Bump and Run Reversal (BARR) Pattern?

Once the lead-in trendline breaks, price usually retests the trendline from the other side — and then one of two things happens.

  • Successful follow-through: Break → retest (the throwback or pullback) → impulse move away from the trendline. This is what you're betting on.

  • Failed break: Price reclaims the lead-in trendline quickly, runs back toward the bump, and traps every breakout trader who jumped in early.

The retest determines the outcome. If the trendline holds as new support/resistance, the trade is working. If it doesn't, get out and don't argue with price.

What are the Different Types of Bump and Run Reversal (BARR) Patterns?

BARRs form in two variations — one bearish, one bullish. Same structure, opposite direction.

  • Bearish BARR top: Forms after an uptrend. Bumps upward into a steep blow-off. Then breaks down through the rising lead-in trendline. Marks the end of the buying climax.

  • Bullish BARR bottom: Forms after a downtrend. Bumps downward into a steep capitulation. Then breaks up through the falling lead-in trendline. Marks the end of the selling climax.

📌 Key Takeaway: Both types share the same DNA — overextension followed by structural failure. Spot the steepness, mark the trendline, wait for the close-based break.

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