"The essential element is having a core philosophy. Without a core philosophy you're not going to be able to hold on to your positions or stick with your trading plan during really difficult times.
- Jack Schwager, author: The New Market Wizards"
2B Top/Bottom Patterns
Trader Victor Sperandeo describes one of the powerful top/bottom reversal techniques, In an
uptrend, if prices penetrate the previous high, but fail to carry through and immediately drop
below the previous high, the trend is apt to reverse. The converse is true for a down trend.
This pattern is also called spring. The 2B setup looks like a micro M pattern and signals
trend reversal when prices stop making higher-highs in an uptrend.
The 2B pattern rule is when prices make a new high or new low; they pull back for a healthy
retracement. After retracement, the price tries to re-test the new high or low. When this test of
new high or new low fails, and it does not maintain the prices above the new high or low, it
signals a potential trend reversal. This setup is very powerful and signals the beginning of a