Australia's largest stock trading and investment forum Australia's #1 stock forum

Thanks for that. In terms of trading this particular...

First 667 Last

Share
Profile

Follow
jimgorr

205 Posts.

01/04/16

15:08

Post #: 17402187
Share

Originally posted by Jako64 ↑

yep, that is a spring, it may have been more clear on a larger timeframe, but it is certainly a spring.

A spring is seen when price dips below a previous level of support, but rejects failing and going lower, and instead recovers its position back above the support level again...... and is considered a 'successful spring' when the next completed bar closes higher.

Just remember that springs are most powerful in an uptrend, or at the very end of an accumulation zone,
and are least powerful in downtrends, or immediately after serious weakness (selling) has occurred.
So they are not all the same, and have differing strengths - but a spring in the 'right place' is generally worth a ride.....
And finally, spring do not always 'work', they can fail, and a failed spring should be treated as a sign of weakness in itself.

cheers

PS- the opposite, or mirror image, of a Wyckoff spring, is the Upthrust
(but in VSA, the opposite, mirror image of an upthrust, is a shakeout - so there is a subtle difference - in Wyckoff the spring and upthrust are in relation to previously established support and resistance levels, and in VSA - a shakeout and upthrust are about the individual shape of the bars)

Expand

Thanks for that.
In terms of trading this particular instrument...
what would you consider possible entry and stop loss here?

IMHO, if the price touches old support and bounces back or starts going up from there that would be the entry.
Stop loss would be close below previous support? or would you wait until it drops below the recent low?
It may seem pretty straightforward, but it is essential to get this right for me at least.
apologies if I am getting ahead of class agenda..
1 Upvote

Reply

Top Stories

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

RSG

Resolute shares bounce back as second payment made to Mali government to secure workers' release

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

There are more pages in this discussion • 1,792 more messages in this thread...

First 667 Last

Thanks for that. In terms of trading this particular...

Top Stories

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Resolute shares bounce back as second payment made to Mali government to secure workers' release

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects