In mid-January during the free, New Year, New Start webinar, I discussed the spring on the daily Soybeans market that had just triggered. I went into some depth on why this setup was choice. If you didn’t catch the webinar, the recording is still on the site. Click here to access it: New Year, New Start Webinar. Anyway, here’s an update of that trade.
Spring in Soybeans
As you can see, it is coming along nicely. Like many springs, this one didn’t test the spring low. It took right off on strong volume. Bob Evans, a Wyckoff master, called this kind of trading action “volume off the bottom.” It’s a strong indication of a very bullish market.
The price action at A was another, minor spring and a place to jump aboard if you were following this market. After a major spring, this kind of action is very nice and clean, supporting the continuation of the up move.
Target
The trade is just about at the initial target objective. That’s about 1501. All indications are that the trade will hit the objective. How it acts at this level will indicate whether it wants to continue higher or not.
Springs: My Bread & Butter Setup
Springs are my ‘bread & butter’ trade setup. This spring is typical. They occur frequently in all markets, intraday and swing. I did a 120-minute tutorial on this one trade setup and explained everything I know about it, including all the nuances. If you are interested in learning about one of the best Wyckoff trade setups, you’ll find more about it here: Wyckoff Spring
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