What is a Spring in Wyckoff Theory?

Understanding Spring Patterns

A spring is a technical pattern rooted in Wyckoff methodology that occurs when price briefly breaks below a well-established support level, triggers stop-loss orders from weak holders, and then quickly reverses back above support. This false breakdown serves as a liquidity grab by institutional traders—often called "smart money"—who are accumulating positions at favorable prices before a sustained upward move.

The spring pattern represents a critical phase in the Wyckoff accumulation cycle. After a prolonged trading range where large players quietly build positions, the spring shakes out retail traders who placed stops just below obvious support levels. Once these stops are triggered and absorbed, the path of least resistance shifts upward because selling pressure has been exhausted and institutional buyers control the order flow.

Identifying Valid Springs

Recognizing a genuine spring requires attention to several key characteristics that distinguish it from a simple breakdown:

• Swift penetration: Price breaks support decisively, often on a single candle or brief sequence of candles
• Immediate recovery: The move below support is short-lived, typically lasting only one to three candles before price reclaims the support level
• Strong closing: The spring candle or sequence closes well back inside the previous range, ideally near or above the midpoint
• Volume confirmation: A spike in volume or tick volume during the spring indicates heavy participation as stops are hit and absorbed
• Follow-through: Subsequent candles show strength, often with bullish closes and expanding volume as the real move begins

The depth of the spring penetration can vary. Shallow springs barely violate support, while deep springs may extend 20-30 pips below before reversing. Both can be valid—what matters most is the speed of recovery and the strength of the subsequent move.

Psychology Behind the Spring

The spring exploits predictable retail trader behavior. Most novice traders place stops just below visible support levels, creating a concentration of sell orders that sophisticated traders can see in the order book or infer from price structure. By briefly pushing price below support, institutional players trigger these stops, purchase the resulting sell orders at discounted prices, and simultaneously eliminate a pocket of potential resistance (those stopped-out traders won't be re-entering long immediately).

This intentional stop-hunt is not manipulation—it's a natural consequence of how large players must operate when building substantial positions. They need liquidity, and stops below obvious levels provide exactly that.

Beware of Failed Springs and Genuine Breakdowns

Not every break below support recovers as a spring. The critical difference lies in the speed and strength of the recovery. If price breaks support and continues lower, fails to reclaim support within a few candles, or shows weak attempts to recover with poor closes, treat it as a genuine breakdown rather than a spring.

Failed springs occur when the fundamental or technical picture has actually deteriorated, and the support break reflects real selling pressure rather than a liquidity event. In these cases, the appropriate response is to respect the breakdown, exit long positions, and potentially look for short opportunities.

Timeframe Considerations

Springs appear on all timeframes but carry more significance on higher timeframes such as daily or four-hour charts. Intraday springs on one-minute or five-minute charts can offer scalping opportunities but require faster execution and tighter risk management. Multi-day springs within weekly accumulation ranges often produce the most reliable and substantial moves, making them particularly valuable for swing traders.