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Bump and Run Reversal (BARR) – Advanced PA

Advanced lesson on the Bump and Run Reversal (BARR): how to identify the Lead-in, Bump, and Run phases with effective trading tactics.

Mark · Trader & Founder, Social Forex

Bump and Run Reversal (BARR) – Advanced PA

Definition of BARR

The Bump and Run Reversal (BARR) is a reversal pattern popularized by Thomas Bulkowski. It appears after an unusually steep trend and consists of three phases: Lead-in (initial trend), Bump (over-accelerated move), and Run (strong reversal). This is an advanced price action strategy that combines volume analysis and trendlines.

Identification

  • Lead-in phase: Price forms a moderate uptrend line at roughly 30-45 degrees. This is the foundation before price gets pushed too far.
  • Bump phase: Price breaks sharply above the trendline, creating a steep channel (>60 degrees) on high volume. Bulls become overly greedy, forming a "bump" that protrudes prominently.
  • Run phase: Price fails to sustain the rally, reverses, and breaks the steep Bump trendline, then falls sharply towards the Lead-in line. This is where sellers take control.

    • Below is a typical BARR structure diagram:

    Price Action — reading candlestick patterns in context

    Key factors are volume and slope. During the Bump, volume usually spikes; during the Run, volume stays strong as support breaks. Confirm the break with a ChoCH (Change of Character) signal on a lower timeframe.

    When price breaks the steep bullish trendline and forms a lower high before breaking the nearest swing low, that is a structure shift to bearish:

    CHoCHHH1HL1HH2HL2 brokenNew LLStructure shifts bearish — uptrend may be ending

    How to Trade

  • Entry: Wait for price to break the Bump trendline, then look for a retest with a confirmation candle (pin bar or bearish engulfing). The [diagram:engulfing-bearish] setup is a strong trigger.
  • Stop Loss: Place above the highest high of the Bump or above the nearest supply zone with a safe buffer.
  • Take Profit: Target the Lead-in line (where the original trend started), a prior support zone, or a Fibonacci extension around 1.272-1.618 from the corrective wave.

    • Real Example

    On the GBP/USD H1 chart, suppose price has a Lead-in from 1.2500 to 1.2700 (slow rise). Then over three sessions it jumps to 1.3100 forming a steep Bump. When a strong bearish candle breaks the steep trendline, you enter short with a stop above 1.3110 and target 1.2700 (Lead-in). This is a practical BARR trade.

    Common Mistakes

  • Confusing BARR with a normal strong uptrend. Not every steep trend is a Bump; a clear Lead-in is required.
  • Entering too early before the trendline break.
  • Ignoring volume to confirm overbought conditions.
  • Placing stop loss too tight, getting stopped out by the final volatility of the Bump.

    • Content is for reference only, not investment advice. Forex trading carries high risk.

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