a look at Trader Vic's
2B pattern
Speranden also known as Trader Vie, analyses ame af he
Px af Profesional Specelusion written by Vicwor
powerful tsp/borrem reversal wechmieues. Trader Vie de
scribes dhis exchnique, “Te a asperend, if prices pemerrate tbe preci
ous high, dave fait to carry ebvough wna immeciarely arop helo she
previous high. che srend is ape so weserse.” "The converte is true for
adowneend. ‘This pacer is also called “spring,” “The 26 sctup
looks like a micro “M” paren and signals crend reversal when
prices stop making bigher-highs in an uperend.
The 2B
mew Leow
attern rule applies when prices make a new high or
pey pull back for a healdhy reeracememt. After the re-
tracement, the price tries to me-test che ‘new’ high or law. W'hen
this rest of new high or new low fails and che markex docs not
maimtain the prices above the new high or below the new how, it
signals a potendal mend reversal. “This semup is very powerful and
signals the beginning of a correction,
“The 2B paccurns are widely visible in intraday sesups and for in-
traday crades it if very valuable to spot the trend tops and ond
bottoms. ‘Traders also can validate the cwo bottoms or owo sops
pattems wich Volume ocownting at peaks oF troughs, Tf dhe vol-
ume on the second peak or second boctom is Jess chan dhe prior
swing, ic signals a divergence and porential 2/8 formacionTrader Vic's 2B Top Rules
Markee isin ats uperend and makes a New High (20 br Hight
The marker attempts a pullback (decent rewacement) for the
next 5-8 bars. After dhe nesracement, price artemprs 00 cade
above the New High and closes above New High. Marke dhs
bar as the ‘Brcakour bat’ “There is no follow-through to close
above the Breakour bar's High as prices dose below the low of
the Breakout bar. ‘This campleres 24 Top’ pactern and signals
a pocential short rade, Place a stop above the recent Siving-
Fgh, “Target the Swing-Low prior 0 che New-High
‘New High
Sell below
if
pry
tracer vics.£8 wortom rules
Prices antempe ro make a New-Low(20-bar Low. After
Low formation, matket cries co pullback next 5-8 bat
ddecenc etracement Again, the Market ties & cottoct
original rend (down) dircccian and closes belaw che B
Mark this bar as dhe ‘Breakdown bar.” There will be
low through co clase belaw the Rreakedawn ar and pric:
abows che Fligh of che Breakdown bar. Encst Lang ab
High of she bar dosed above che ireakdown bars’ High,
a STOP below the socene Swing: Low. Plhee a Target 0
Swing: High petor eo thy Neve Low
2B Buy
Breakdown.
Trader ‘The market artempes eo vest a recent new high
but dees moe hold the prices above this range. ‘Trades ox
untered go sal che low of che bar eying mm breskour or E
high of the bar eying a breakelown,
Target: ‘The target is usually che “swing lave” prior co ¢
high or ‘owing high’ prioro dhe mew low.Rar ein Ca{as Dacia tbe csho sme docked ede ha Bae Le Pac “ani pea wah cae agen od
mores retire i2jea% Unmet paekreReGRON OS NPS ARCS