This is a classic liquidity trap (false breakout) where institutions dump shares onto retail buyers. Sperandeo shorts the market the moment the price slips back below the old high. 3. Macroeconomics and the Business Cycle
Master the Markets: A Deep Dive into Victor Sperandeo’s Trading Philosophy
Price rallies back to break that previous high but quickly reverses and closes below it. This is a classic liquidity trap (false breakout)
To combat this, he advocates for treating trading purely as a business of probabilities. He recommends keeping a meticulous trading journal to review errors, eliminate emotional biases, and cultivate the mental resilience required to handle natural drawdowns without panicking. Conclusion: Why You Should Study Trader Vic Today
The price attempts to make another high but fails to break above the previous new high, quickly reversing downward. Macroeconomics and the Business Cycle Master the Markets:
: In an uptrend, price rallies but fails to reach a new high; in a downtrend, it fails to reach a new low.
Unlike purely technical traders, Trader Vic heavily integrates macroeconomics into his decision-making process. He argues that government policy and the Federal Reserve are the ultimate drivers of the primary trend. Conclusion: Why You Should Study Trader Vic Today
Victor Sperandeo , famously known as "Trader Vic," provides a comprehensive framework in " Methods of a Wall Street Master
When price closes back below the previous high, it indicates a "bull trap." The Trade: Enter a short position immediately.