Wyckoff Spring

Unlock the essential crypto terminology for XDNA, including key concepts and definitions to enhance your understanding of this blockchain technology.

Wyckoff Spring is a price pattern that indicates a potential reversal in a downtrend. It forms part of the Wyckoff Method, which focuses on market cycles and the relationship between supply and demand.In a typical Spring scenario, the price drops below a previous support level, creating the illusion of a trend continuation. This decline often triggers panic among traders, leading to increased selling. However, this sudden drop is usually a manipulation by stronger players—often referred to as “smart money”—who aim to accumulate positions at lower prices.After this shakeout, the price rebounds sharply, clearing previous resistance levels. This recovery signals a shift in market sentiment, suggesting that the downtrend may have ended. Traders look for confirmation through increased volume during the upward move.The Spring pattern can serve as a useful indicator for entry points, as it reflects the balance of supply and demand changing in favor of bullish momentum. Identifying this pattern can help traders make more informed decisions about potential market reversals.

Latest Resources and Blogs