If the price breaks above the previous high but fails to sustain momentum, falling back below the level of the first high, a reversal short is triggered.
The price attempts to revisit the previous low (or high, in an uptrend). It must fail to make a new low, often forming a double bottom or a higher low. If the price breaks above the previous high
Sperandeo bases his strategy on three hierarchical principles: Preservation of Capital : Risk is the primary concern before considering profit. Consistent Profitability If the price breaks above the previous high