2B bottom/top

Discussion in 'Technical Analysis' started by Harry, Jan 6, 2003.

  1. Harry


    Can anyone give a short definition of a 2B bottom/top - I have found some examples on the web - it's a kind of a false breakout - but a definition or link would be great.

    Thanks a lot!
  2. There are several definitions. Some involve price action alone. Others involve indicators alone and others involves both relationship between price and indicator.

    The examples (ones you didn't provide any links to) you have are probably good enough definitions.

  3. Harry


  4. It's a variation of Traders Vic's "1-2-3 top/bottom". He provides a clear explanation in either of his 2 books. Basically a double top after a trend run, evidenced by a correctly drawn trendline being violated and price subsequently breaking out of horizontal support/resistance trendlines, prior to anticipated trend reversal.
  5. The "Hard Right Edge" link is pretty close, but like Stardust said,
    if you want a complete and accurate definition and examples, read one of the Trader Vic books.

    Good luck...
  6. Harry


    Thanks! That was exactly what I was looking for.

    If anyone else is interested, here is the exact link to the definition: http://www.dacharts.com/2b.htm

  7. I wonder what the macd looks like then too.

    Man, I love that mouse over thing.

    I'm presuming the X line was drawn at the low of the bar considered the breakout bar. If that isn't correct, please tune me up.

  8. ddog


    Has anyone been able to code this pattern in Tradestation as a trading system?

    I have tried but can't seem to be able to get it to work the way I want.
  9. Good observation. Read his books, at least one of them. He talks about the TA stuff in both of them so reading only one should be enough. They can probably be checked out from a good library or ordered via interlibrary loans.
    #10     Jan 12, 2003