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BUMP AND

RUN

The bump and run reversal pattern emerges after a rapid and

significant rise in prices due to excessive speculation. The pattern

begins with an introductory phase in which prices normally move

up without any sign of excessive speculation. The trendline during

the introductory phase is moderately steep.

Once prices have peaked and started to move down towards the

trendline, the chart starts showing the right side of the bump. The

volume increases after the lead forms on the left side of the

bump. The execution phase begins when the prices reach the

main trend line.

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