31 / 50
Mean reversion
Which price, broken again, separates a 2B false breakout from Turtle Soup?
2B false breakout · 2B reversal
What it bets
Price has just made a new extreme, failed to hold it, and fallen back through the prior swing point, so this breakout is false.
How the rule is written
Victor Sperandeo's 2B: after the market tests a new high and then falls back through the price where the prior high was made, treat the upside break as failed and trade against it. A new low reverses that. The requirement is a failed new extreme plus a return through the prior structure point, not an arbitrary long upper wick.
When it fails
If the prior structure point is set too close, an ordinary pullback also triggers a 2B. Set too far away, and signals are rare, and late.
Do not confuse it with
Turtle Soup anchors a fixed window of about 20 days, and failure means a return inside that window. A 2B anchors swing structure. It does not require a fixed number of days.