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The 2B setup occurs when a market makes a new high or low, pulls back, and then rallies to create a slightly higher high (or lower low). If the price fails to sustain that breakout and quickly reverses below the previous peak, a 2B setup is triggered.
The market is never wrong; your opinion often is. Cut losses quickly when the market proves you wrong. This public link is valid for 7 days
The foundation of all of Sperandeo's trading is his unshakable business philosophy, summarized in the "Trader Vic Principles of Trading." At its heart are three guiding rules:
The price rallies and breaks above the previous minor rally high. Can’t copy the link right now
This signifies a lack of institutional buying pressure at higher prices. Traders can enter a short position the moment the price slips back below the initial high, placing a very tight stop-loss just above the false breakout peak. This setup offers an exceptional reward-to-risk ratio. Risk Management and Market Philosophy
To master Sperandeo's principles, you must manually backtest his 1-2-3 method and 2B indicator on your favorite assets. Modern algorithmic algorithms frequently target liquidity pools around obvious highs and lows, making the 2B indicator highly relevant in today’s volatile crypto, forex, and equity markets. Treat the book as a blueprint, but build your own consistency through screen time and disciplined risk management. If the price fails to sustain that breakout
To understand market movement, Sperandeo adapted classic Dow Theory into a highly actionable framework. He classifies all market movements into three distinct trends, comparing them to the motions of the ocean:
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Sperandeo recognized that institutional traders frequently push prices past visible support or resistance levels to grab liquidity. He formalized this observation into the , which is designed to exploit these false breakouts.