What is a Spring in Wyckoff Theory?
Quick Answer: A spring is a false breakdown below support that quickly reverses higher, signaling accumulation and fresh buying interest.
Understanding Spring Patterns
A spring (Wyckoff terminology) occurs when price briefly breaks below support, triggering stops before quickly reversing higher. It indicates smart-money accumulation.
Identifying Springs
Look for a swift dip below support with immediate recovery and strong close back inside the range. Volume spikes or tick volume surges confirm participation.
Entry Technique
Enter on the reclaim of support or on a retest, placing stops below the spring's low. Target prior range highs or nearby resistance.
Beware of Breakdown
Not every break recovers. If price fails to reclaim support quickly, treat it as a genuine breakdown and adjust bias.
Context Validation
Springs work best within accumulation ranges backed by bullish higher-time-frame structure. Without that context, the move may be random noise.
Related Terms
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