Respect the market and follow the market. The market is like an unfathomable ocean, powerful and unpredictable. Trying to challenge its authority is like trying to stop a chariot with a mantis arm.

The "123 Rule and 2B Rule" in Dow Theory are treasures in the trading world. Victor, a master, summarized the complex trend reversal phenomenon into a clear 123 rule with his profound theoretical and practical skills. Among them, the trend line is broken, like a warning bell; the rise is difficult to reach a new high and the fall is difficult to reach a new low, which sends a signal of trend exhaustion; the rise falls back to break the previous low and the fall rebounds beyond the previous high, which further confirms the reversal of the trend. The order of these three conditions is flexible. As long as they are met, they are important reminders of the change in market direction.

Taking the upward trend as an example, when the price no longer reaches a new high, this obviously violates the key element of the top-to-top ratio in the upward trend, which is undoubtedly a striking warning that the trend may change. Just like the discordant notes that suddenly appear in the movement, breaking the original upward melody. If the price falls below the previous low again, the requirement of the bottom being higher than the bottom cannot be met. At this time, the trend is like a runaway train, gradually deviating from the upward track, turning into a fluctuating trend, or even plunging into the abyss of a downward trend. Therefore, in the trend trading method, the 2nd and 3rd points are like two key stars, attracting the attention of traders, while the 1st point is like an auxiliary Big Dipper, adding more basis for the judgment of trend reversal.

As a special form of the 123 rule, the 2B rule also plays an important role in the judgment of trend reversal. In the process of an upward trend, sometimes the price successfully crosses the previous high point, but it seems to be a spent force and fails to gain a foothold, and then falls below the previous high point again. Once this happens, it is like a warning bell ringing in the market, which often means that the price has touched the ceiling and is about to start a downward journey. The decline is usually based on the low point between the two highest points. If this low point is unfortunately broken, the price will run down like a wild horse. If traders can keenly observe and capture these signals, they can find the right direction in the turbulent market and sail smoothly to the harbor of profit.#BTC创历史最大月度涨幅