Wyckoff Spring Trade Setup

Wyckoff Spring Trade Setup

Wyckoff Spring trade setup.  Sorry to post this so late.  I meant to post yesterday but got caught up in other work.

Did you catch the perfect Wyckoff Spring trade setup in yesterday morning’s S&P eminis?  It was picture perfect.  The Spring had everything doing for it.  We saw a down move end.  Prior to the Spring setting up, we see good quality demand coming into the market.  Then the Wyckoff Spring trade set up.  And then, the market didn’t look back.  No testing, no real pullbacks.  This trade ran for 18 ES points.  That’s $900 per contract.  Trades like this not only make your day, but can make your trading week.

Wyckoff Spring: Characteristics

There are several factors to consider when trading a Wyckoff Spring.  One of the most important is the presence of demand.  You might be thinking, there is no demand here.  The market was moving down before the trade set up.

Yes, it’s true.  The market was moving down before the trade triggered.  And, generally, Springs in a downtrend are a bad idea.  Because supply is dominate, Springs in a downtrend typically don’t work well.  Just like any trade setup, you have to know the conditions under which they work the best.

If supply is in control, then we want to avoid Springs.

Wyckoff Spring: Demand

But here, supply was not in control.  Demand was making it’s presence felt.  We see this at A.  Not only does the Weis Wave volume show strong buying coming into the market just before the US open (indicating the smart money was actively buying the selling), we see the swing at A is larger than any prior upswing in the down move.  These are the tell-tale signs buyers were stepping in.

As the market came back down and tested, we see no supply and a close back above the last swing low–perfect conditions for a Wyckoff Spring trade setup.

If you don’t know about the Wyckoff Spring trade setup or missed this one, you might want to learn more about this exceptional trade. The Wyckoff Spring is my day-in, day-out bread & butter trade–one I am always looking for.  If you would like to learn how to trade these terrific setups, including all the nuances that make the Spring such a choice trade, you are invited to check out this video tutorial: The Wyckoff Spring Trade Setup.