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Bump and Run Reversal PDF Print E-mail
Originally called the Bump and Run Formation, the acronym didn’t get the message across, so it was renamed. The set up and formation is quite easy to understand and actually tells you of a reversal area for the formation so you can trade counter trend. The saying “The Trend is Your Friend” is true but there are trades available counter trend also.

Here is an example of a set up in real time, before the trade is triggered.

Note that there are four important parts to the trade.
  1. Base Line: This line should be between 35 and 45 degrees.
  2. Bump: This line should be greater than 45 degrees.
  3. Blue Lines: The highest point of the bump line should be close to or greater than 2 times the highest point from the base line prior to the bump line.
forex daily charts

Here is an example of a completed formation.
In this example we also had a Double Top affecting the play. When price closed below the base line, price headed straight to the green line which was another base line.

forex daily charts

Here is how the trade could have ended.

forex daily charts
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Kimball  - Bump and RUn     |37
Yeah, this is a pretty popular set up. The more you look at it the more sense it
makes.
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