A subsequent drop pushes the price below that previous low, making a new swing low.
Another cornerstone tactic introduced by Sperandeo is the , commonly referred to as a "spring" or a "fake breakout." This pattern is specifically designed to exploit institutional liquidity hunts and retail trader traps. A subsequent drop pushes the price below that
Trader Vic: Methods of a Wall Street Master is a definitive text in the canon of trading literature. Victor Sperandeo, a professional trader with decades of experience on Wall Street, outlines a comprehensive approach to markets that combines technical analysis, strict risk management, and economic theory. The book is renowned for its disciplined, business-like approach to speculation, emphasizing that trading is a profession requiring specific rules, rather than a gamble based on intuition. This report summarizes the core concepts of the "Trader Vic" methodology, including the "2B" test, the importance of risk/reward ratios, and the philosophy of consistency. Victor Sperandeo, a professional trader with decades of
Uninformed traders buy the breakout, while short-sellers are forced to buy back their positions to cover losses. Uninformed traders buy the breakout, while short-sellers are
: Price makes a new high or low, followed by a pullback.