For a valid pattern, the time between Top 1 and Top 2 must be at least 3 weeks but no more than 8 weeks. If the second top forms too quickly, it is a false breakout. If it takes too long, momentum decays.
: Wait for a post-breakout retest. Enter when the price pulls back to validate the old resistance line as new support. Risk Management Metrics Placement Strategy Stop-Loss
By patiently waiting for a failed breakout and the subsequent reversal, you are not chasing a breakout; you are capitalizing on the failure of the breakout itself. This approach, rooted in the wisdom of Victor Sperandeo, allows you to identify potential major reversals in the banking sector with high conviction and manage your risk effectively. bank breakout 2 top
This strategy is not just theory. In the volatile world of bank stocks, where sudden moves driven by economic data or sentiment are common, the 2B Top can be a particularly effective tool for catching major turning points.
: Features sticky-sharp hooks designed to pin fish that strike aggressively out of anger. 🎯 Target Locations: Where to Cast For a valid pattern, the time between Top
During the formation of the "2 Top," volume must contract (sellers disappear). The candle requires volume 150% higher than the 20-day average. Look for the "Volume Exhaustion" signal on the second top.
: Explain that a true breakout requires high volume. Institutions (banks) use this liquidity to exit long positions or enter shorts. : Wait for a post-breakout retest
If you want, I can:
Calculate the height from the valley floor to the double top resistance. Add that distance to the breakout point. That is your first target.