The 2B pattern was first introduced in the book "Principles of Professional Speculation" by Victor Sperandeo (also known as Trader Vic). Trader Vic confirmed that this is an excellent reverse trading technique. While the price is in an uptrend, forming a high, retracing then reaching the old high. If the price fails to break through the old high for the first time, it will immediately reverse. And a downtrend will form. That is the concept of the 2B pattern.

Traders can look for the 2B pattern in small timeframes for day trading or can use it for swing trading or position trading. As long as we understand the psychological nature of the market through the 2B model, we will be able to apply it effectively.

Rule of forming a top 2B pattern

The first thing you need to pay attention to is the market must be in an uptrend. If the trend is not clear, then absolutely no pattern appearing like that will not work.


After an uptrend, the price will make a top, then retrace. The bulls keep rising and try to break out of the old high and close above that old one. We often call this a breakout. But two things will happen:

1. Price tries to cross the old high but closes below the high, called a false breakout.

2. The price tried to cross the old high and closed above the top. This time it was a real breakout, but on the next candle, the price turned down and created a second high. After all, this is also a fake breakout.

When either of these cases occurs, the top 2B pattern is considered to be completed and gives us an extremely good SELL setup.

We will SELL as soon as there is a bottom candle. Stoploss placed on the second top. The price target will be at the nearest bottom.

Of course, if the price breaks out and continues the uptrend, nothing happens, we will look for a BUY order or continue to wait for another peak.

You might think this is the old 2-vertex pattern, but it is not. Below is the actual figure, do you see two vertices:


Rule of forming a bottom 2B pattern

Similar to the top 2B pattern, the bottom 2B pattern also needs a previously supported downtrend. Then the price will create a bottom and bounce back a bit.


After rebounding, the price continued to decline and tried to cross the old bottom. Now there are two cases:

1. The price stuck its tail below the first bottom but closed above the bottom.

2. The price broke out successfully and closed below the bottom. But in the following candlestick, the price turned up again, forming the second bottom.

When either of these cases appears, the bottom 2B pattern is considered to have formed and gives us an extremely good BUY setup.

We will BUY as soon as there is a close candle above the old bottom. Stoploss placed on the second bottom. The price target will be located at the nearest high of the previous bearish wave.

Of course, if the price breaks out and the downtrend continues, nothing happens, we will look for a SELL order or continue to wait for another bottom.

You might think this is the old two-bottomed pattern, but it is not. Below is the actual image, do you see the two bottom:


What is the mentality behind the 2B pattern?

You need to understand the psychology of the trader behind this pattern to apply flexibly and effectively, avoid using machines that lead to losses and then blame the market for gambling or cheating something.

First, when the market is trending but creating a top / bottom, it means the market is slowing down, either to reinforce the trend or possibly the trend to weaken. We think of two scenarios, but it will take a while to know which scenario the price will follow.

Continue, when prices bounce back and break out old highs / lows. This is the stage that will tell us whether price will continue or reverse. If a real breakout is fake, it means that the buyers (in an uptrend) / the sellers (in a downtrend) continue to control the market, and of course the market is still following the old trend. You will be looking for a trend entry entry point by waiting for a pullback.

But if the price tries to break through the old top / bottom but fails, only the tail of the candle can be stuck out. There are three cases that happen, one is that the buyers (bullish) / the sellers (bearish) have no power and they will surely be overwhelmed by the other side leading to price reversal.

Another case is that traders miss BUY at the old peak, then when the price returns to the old peak, they immediately cut the order after a period of fear. Form a SELL command area around the old vertex.


The last case is also very familiar to you, it is the stophunt phenomenon or stop loss scan. There will simply be a lot of traders waiting for the price to re-touch the resistance at the old high and place a SELL order expecting the price to reverse. That trader will place a stop loss on the top of the old peak, where the set of stop loss of SELL order means a reciprocal BUY order. Big boys will try to push the price up and match all those BUY orders with their SELL orders.


So they both eliminated the small trader from the market and SELL at the top. When the price dropped, they considered it successful.