Wyckoff Spring

DISCLAIMER

The information provided here is for general informational purposes only and does not constitute
financial advice. While efforts are made to ensure the accuracy and timeliness of the content, no
guarantees are made regarding the completeness, accuracy, or reliability of the information. Any
reliance you place on such information is strictly at your own risk. Before making any financial
decisions, it is recommended to seek advice from a qualified financial professional who can assess
your individual situation and provide personalized guidance. The content does not constitute an
endorsement, solicitation, or recommendation to buy or sell any financial instruments. The financial
markets can be volatile, and past performance is not indicative of future results. Any investment
PR

carries risks, and individuals should carefully consider their own financial situation and risk tolerance
before making investment decisions. The content is not intended to be a substitute for professional
financial advice, diagnosis, or treatment. Always seek the advice of your financial advisor or other
O

qualified financial professionals with any questions you may have regarding your financial situation.
PE
R
TY
O
F
FU
LC
R
U
M
 Wyckoff Spring

The Wyckoff Spring is a technical analysis pattern named after Richard D. Wyckoff, who was a
prominent stock market trader and educator in the early 20th century. The Wyckoff method focuses
on understanding the intentions of large institutional traders and identifying their accumulation or
distribution phases. The Wyckoff Spring is part of this method.

The Wyckoff Spring is interpreted as a change in market sentiment. It suggests that smart money or
institutional investors are accumulating positions during the final shakeout of weak-handed traders.
After penetrating the support/resistance level, the price quickly reverses and moves back into the
trading range. The rapid recovery suggests that the buyers/sellers were not able to maintain control,
and buying/selling interest is emerging.
PR

Confirmation of the Wyckoff Spring often comes with subsequent price action. A strong rally or
upward movement following the spring validates the pattern and reinforces the idea that the
O

downtrend is losing momentum. It would act in the same manner if the idea was loosing bullish
PE

momentum. Here is a simplified drawing:

R
TY
O
F
FU
LC
R
U
M