Wyckoff Theory
Master the art of reading institutional footprints through Wyckoff methodology. Understand accumulation, distribution, and trade with smart money.
False breakdown below the accumulation range
What It Is
The Spring is one of the most powerful Wyckoff events. It's a deliberate shakeout—price breaks below support, triggering stop losses and convincing traders that the downtrend is resuming. Then it quickly reverses back into the range. This is not an accident. Smart Money engineers Springs to accumulate more shares at lower prices. Retail traders sell in panic; professionals buy their shares. The Spring creates a "bear trap"—shorts enter expecting further decline, but instead get squeezed when price reverses. This adds fuel to the subsequent markup.
Spring - Visual
Price Behavior
- Breaks below established support
- The break is brief—often just 1-3 candles below
- Quickly reclaims the range
- Often closes back inside the range on the same or next session
- Creates a long lower wick or reversal candle
Volume Behavior
- High volume on the breakdown (stops being triggered)
- Lower volume on the recovery test confirms absorption
- Volume should NOT expand on the recovery
- Subsequent rallies show increasing volume
What It Means
- Liquidity grab by Smart Money
- Bear trap—shorts get squeezed
- Final test of supply before markup
- One of the strongest bullish signals in Wyckoff
Not every break below support is a Spring. A true Spring must recover quickly with lower volume. If price stays below support with expanding volume, it's a genuine breakdown.