Wyckoff Spring Strategy

The Wyckoff Spring is the final test in an accumulation phase where price briefly breaks below the established support of the accumulation range, triggering stop losses and attracting short sellers, before quickly recovering above support with strength. This deceptive false breakdown is the last test of supply before the markup phase begins, offering an excellent risk-reward entry.

The Spring confirmation (Sign of Strength) shows: a strong, high-volume bullish bar that pushes price back above the accumulation range support, followed by a Test of the Spring (price returns to the spring level on low volume and holds — supply is absent at this level now), then a break above the range's last high (Back Up to the Creek).

Three valid entry points: (1) Immediately on the Spring reversal bar close (aggressive, highest reward, highest risk of being a false Spring). (2) On the low-volume Test following the Spring (confirmation, moderate reward and risk). (3) On the first Breaking of the Ice (price closing above the accumulation range resistance after the Spring) — most conservative but confirmed.

Wyckoff's Point and Figure (P&F) methodology counts the width of the accumulation range horizontally to project the subsequent upside target — wider, longer accumulation produces larger markup targets. While P&F is complex, a simpler approach measures the accumulation range height and projects it upward from the Spring low as an initial minimum target.