What do crypto traders call the Bart formation and how to trade it?
The Bart Formation, or just Bart, is a colloquial name given by crypto traders to a chart pattern that is also sometimes called “pump and dump”. The cryptocurrency rallies sharply, usually on a shorter timeframe like 30M, and after a pretty much flat period retraces all of its previous gain. The name Bart came from the pattern’s likeness to the shape of Bart Simpson’s head.
On bitcoin markets, the Bart occurs mostly after a long periods of sideways when the traded volumes decline and nothing is happening. On altcoin markets, where thinner books are normal, you can still see Barts quite often.
The idea behind the Bart pattern is that there was an attempt to start a markup in the market, by a single actor or by means of organic uncoordinated speculation, but that attempt did not catch on. It is therefore a signal of market weakness.
The Inverse Bart formation
Sometimes referred to as “traB”. Alernative name would be “poop and scoop”.
Alternative names for Bart formation
Pump and Dump.