Reply to thread
Results 1 to 1 of 1

Thread: Trading strategy for 2B pattern

  1. #1 You can automatically minimize the read posts in your account in the 'Forum Settings'
    MT5 Rookie
    I am:
    Burraktrader will become famous soon enough Burraktrader will become famous soon enough Burraktrader's Avatar
    Join Date
    Oct 2020
    Accumulated bonus
    152 USD (What is this?)
    Thanked 476 Times in 30 Posts
    Subsribed 0

    Default Trading strategy for 2B pattern

    The 2B pattern is also called a "spring", it resembles a small letter M or W on the chart and signals a possible reversal of an upward or downward price trend as soon as the market stops forming new, much higher highs or lows.

    For the first time, the 2B pattern (an excellent and very strong reversal trading technique) was described in the book by Victor Sperandeo (he was then known as Trader Vic among traders) Speculating Professionally. Trader Vic described this excellent technique as follows: In an uptrend, if the market price touched the previous price high, but failed to cross it the first time, and immediately fell below the previous price high, this indicates that the market trend is -that will make a U-turn. " The opposite is true for a downtrend as well.

    The rules of pattern 2B are applied as soon as the price in the market forms a new high or low, and after that a tangible pullback. After the rollback, the price again tries to test the formed price maximum or minimum. As soon as this testing of a new high or low is unsuccessful, it is a signal of a potential reversal of the previous price trend. This setup is powerful enough and signals the trader about the beginning of a correction in the market.

    2B patterns can be found on intraday setups and is quite useful for making deals within the day by finding trending tops and bottoms. Forex traders can also use when analyzing 2 tops and 2 bottoms of the volume of transactions. If this volume at the second peak or day is less than at the first peak or day, then this tells him about divergence and the formation of a possible 2B formation.

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


Reply to thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts