Didactic case — Generic structure, no real ticker. Shows how to read spring → SOS → LPS in Accumulation Schematic #1. For definitions, variants, and UTAD → Wyckoff encyclopedia entries.
Fuente: Wyckoff Analytics; Pruden, Wyckoff Schematics (MTA 2006). Accumulation with spring in phase C — not required in every range (Schematic #2 proceeds without spring).
Context
After a mature downtrend, fictional XYZ enters a trading range €48–€54. Phase A: selling climax at €49 on high volume, automatic rally to €53, secondary test at €50 on declining volume. Phase B: cause built over ~8 weeks with internal swings. The Composite Man accumulates while weak holders sell every bounce.
Operational goal: do not buy the first bounce — wait for the decisive supply test in phase C.
Setup
| Element | Value (example) |
|---|---|
| TR support | €48 (lower creek) |
| TR resistance | €54 (upper creek) |
| Operating phase | C — supply test |
| Expected event | Spring below €48 on low volume |
Card — Valid spring criteria
- Temporary break below TR support (phase C).
- Volume on the break below range average.
- Close **back inside the TR — bear trap for weak sellers.
- Follow-up confirmation: SOS above intermediate resistance, then LPS.
Sequence
- Phase B — range €48–€54; declining volume on support tests; no full long.
- Spring (phase C) — intraday €46.80 (−2.5% below creek); volume −55% vs 20-day average; close €50.20 inside TR.
- Spring test — two sessions sideways €49–€51, volume still low → supply exhausted.
- SOS (phase D) — break €52 (intermediate creek) on volume +40%; wide spread → demand in control.
- LPS — pullback to €51 on volume −30%; technical stop below spring low (€46.50).
- Phase E — markup toward €58; partial exit at pre-distribution resistance.
Outcome / Lesson
| Didactic outcome | Interpretation |
|---|---|
| Spring | Trap for breakdown traders; Composite Man absorbs |
| Full entry | After SOS + LPS, not on the spring |
| Invalidation | Close below €46.50 or high-volume spring with no recovery |
Lesson — The spring is not an entry signal: it is a test. The effort/result law applies: low volume with large excursion below support and recovery = absorption. Without SOS, the range may extend or fail.
Full encyclopedia entries
Spring (Wyckoff) · Accumulation phases A–E · Sign of Strength (SOS)
Links: Wyckoff tradition · Case studies index