Trader Vic Methods Of A Wall Street Master By Victor Sperandeopdf

The price must break the established upward trendline.

A subsequent rally pushes the price slightly above that previous high. The price must break the established upward trendline

This objective rule determines when a trend has officially changed direction. To spot a reversal from an uptrend to a downtrend, look for three specific events: The price must break the established upward trendline

The price falls below the previous minor low. Once this happens, the reversal is confirmed. 2. The 2B Pattern (The "Spring" or Fakeout) The price must break the established upward trendline

The price rallies but fails to make a new high.

This is the most important rule. Before asking how much money a trade can make, you must ask how much you stand to lose. Protecting your principal keeps you in the game.