medium · Volume Spread Analysis wyckoff-phases-schematics

What is the primary objective of a 'Spring' (or shake-out at a range bottom) from the professional operator's perspective?

1. To trigger sell-stops of retail longs and trap breakout shorts, providing cheap inventory for the professionals' own positions.
2. To test if the market-makers are bullish enough to 'hold the bag' at the lower price levels.
3. To prove that 'No Selling Pressure' exists by deliberately crashing the price and seeing if it recovers.
4. To create a 'Selling Climax' that will fundamentally reset the market's perceived value.

Sign up free to see the explanation and track your rank →