2B Reversal Pattern, first described by Victor Sperandeo (Trader Vic), is one of the clearest signals of market reversals. The logic is simple: the market tempts traders into chasing a breakout, then swiftly reverses, punishing impatience and rewarding those who wait for confirmation. It is not just a long‑term pattern; it can be applied all the way down to the M1 chart for precise intraday execution.
Structure of the 2B Reversal
The sequence unfolds in five steps:
- Price pushes strongly toward support or resistance.
- The level is broken and traders jump in, expecting continuation.
- Price snaps back quickly and closes back beyond the level—revealing a false break.
- A minor pullback tests the area.
- A decisive close confirms the reversal and opens the safest entry.
This “12345 count” keeps the trader patient, waiting for the market to prove the turn instead of gambling on the first spike. False breakouts create the best reversals because trapped traders fuel the opposite move.
Pullback & Close Filter
A wick through a level is not enough. The higher‑probability entry comes after the pullback and a confirming close. This filter prevents chasing noise and allows the market to reveal intent. The stop goes beyond the extreme wick of the false break; the target must provide at least a 1:2 risk‑reward ratio.
Why It Works
2B reversals exploit trader psychology. Those who entered on the false break panic and close positions, while new traders step in with the reversal. This dual flow produces momentum in the opposite direction. It is not an indicator‑based trick but a structural read of how participants behave under stress.
Application Across Timeframes
Many assume 2B is only for higher timeframes. In practice, the pattern is valid from weekly charts down to the M1 timeframe. On intraday charts it often provides precise turning points with tight stops. Traders who master 2B on the M1 chart gain an edge: they can trade the same psychological trap at the most granular level, compounding opportunities across sessions.
Integration with Strategy
- Entry: after pullback and close confirmation.
- Stop: beyond the extreme of the false break wick.
- Target: structural zones or logical multiples of risk (minimum 1:2).
The rule is clear: stops are never arbitrary, they are always technical. Consistency requires patience—wait for the reversal close, then act.
Extended Analysis
This site will host broad guides, chart examples, and ongoing analysis centered on the 2B reversal. From nested 2Bs to combinations with 3CR and break–pullback–close sequences, the goal is to build a full library of applications. The time to buy your money‑counting machine will come once you solve this pattern and apply it with discipline.
Conclusion
The 2B reversal is not just another setup—it is a professional’s filter for false breaks and a trader’s weapon against traps. Do not chase the first break; wait for the confirmation close. Applied with patience on any timeframe—even M1—it provides one of the cleanest ways to turn market deception into consistent opportunity.