Price action series-The 2B Pattern Failed Breakout Reversal...

Continuing the price action series with a pattern that appears at every major turning point in the market: the 2B Pattern, also known as the failed breakout reversal.
It forms when price breaks a previous high or low but fails to follow through and immediately returns back inside the prior range. This shift reveals exhaustion in the prevailing trend and exposes trapped traders on the wrong side.

Below are two real examples from Gold and dxy showing both the bullish and bearish version of the pattern.

Bullish 2B Pattern – Bottom Formation Left Chart

A 2B bottom occurs when price breaks below a previous swing low but cannot sustain the breakdown.

In the chart on the left:
Price takes out the prior low, triggering new short positions and stop-losses.
The breakdown immediately fails as price snaps back above that previous low.
This reclaim signals that the downward continuation attempt has failed.
The shift in pressure initiates a new upward move, confirming the reversal.

This is a classic 2B bottom structure: a failed breakdown followed by a strong reclaim.

Bearish 2B Pattern – Top Formation Right Chart

A 2B top occurs when price breaks above a previous swing high but fails to extend higher.

In the chart on the right:
Price pushes through the earlier swing high, inviting breakout buying.
Momentum fades almost instantly, and price falls back below the prior high.
This failure indicates buyers have lost control and the breakout has trapped late entries.
Price then shifts downward, validating the failed breakout.

This is the mirror image of the 2B bottom, but occurring at a swing high.

Why the 2B Pattern Works

A trend remains intact as long as it continues to produce new highs or lows.
A failed attempt to continue the trend shows:
exhaustion in momentum
absorption of breakout orders
trapped traders exiting
the beginning of a directional shift

The 2B identifies this shift before the full trend reversal is completed, making it an early but reliable reversal model.

Where This Pattern Performs Best

15m and 1H for intraday reversals after volatility spikes
4H for swing-trade reversals and cleaner structure
Daily for major tops and bottoms
Around key levels such as previous highs, lows, or liquidity zones

The pattern is especially common in Gold due to its volatile but structured movement.

Summary
2B Bottom failed breakdown
2B Top failed breakout
Works by showing loss of continuation and a shift in order flow
Ideal for identifying early reversals without predicting tops or bottoms

Sharing this purely for educational purposes as part of the Price Action Pattern Series.
More patterns will be published in the next parts of this series. Trade safe