The Spring occurs when price dips below accumulation range support to sweep stops, then rapidly reverses back inside. This is the smart money shakeout.
- Identify accumulation trading range (Phase A-C)
- Price breaks below range support (the Spring)
- Volume on the spring is LOW (no real selling)
- Price quickly recovers back inside the range
- Enter long on recovery candle
- Stop below the Spring low
- Target: Top of the range, then markup phase
- Post-spring: Test bar with even lower volume confirms
- Sign of Strength (SOS) rally with expanding volume
- Last Point of Support (LPS) = final entry opportunity
- Markup begins when price exits range on high volume
The key to identifying a Spring vs a genuine breakdown is volume. A true Spring occurs on diminishing volume. The smart money is not selling, they are accumulating.