A "test" of the previous high or low (which fails to reach a new peak/trough).

He uses Austrian Economics to understand the "why" behind market movements, focusing on inflation, interest rates, and government policy.

The breaking of the previous diagnostic low (in an uptrend) or high (in a downtrend).

In a bullish trend reversal (shifting from bearish to bullish), the method works as follows:

His 1991 classic, Trader Vic: Methods of a Wall Street Master , is not just a book about trading. It is a philosophical treatise, a historical document, and a technical roadmap rolled into one. While many books promise the secret to riches, Sperandeo’s work delivers something rarer: a logical, repeatable methodology based on probability, economic reality, and the unshakeable discipline of a professional.