The price drops below the low established during the initial retracement (the valley between the two peaks).
When all three conditions are met, a formal trend reversal is confirmed, offering a high-probability entry point. 3. The 2B Indicator (The Spring or Fakeout) The price drops below the low established during
Victor Sperandeo’s Trader Vic: Methods of a Wall Street Master outlines a three-pronged approach combining technical analysis, macroeconomic trends, and disciplined psychology to achieve superior market returns. Core methods include the "1-2-3" trend reversal, the "2B" indicator for catching market fakeouts, and strict risk management focusing on capital preservation. For further study, you can explore the principles found in the book Trader Vic: Methods of a Wall Street Master by Victor Sperandeo. Share public link The 2B Indicator (The Spring or Fakeout) Victor
This book is an absolute must-read for any serious trader who wants to understand the complete picture of professional speculation. If you are looking to build a solid, risk-first foundation for your trading career, Sperandeo's philosophy is an invaluable guide. Share public link This book is an absolute
Only when all three criteria are met does Sperandeo consider the trend officially reversed. This prevents the common mistake of catching a "falling knife" or shorting into a rising spike prematurely.