Lesson / WY-07-32
A Spring first describes behavior at a range floor: price crosses the candidate lower boundary and returns. The return initially shows only that this breakdown did not immediately continue outside. Stopping may result from reduced aggressive selling, stronger passive buying, or bids ceasing to move lower. Recovery may also involve short covering, new aggressive buying, and sellers withdrawing or raising Ask quotes; ordinary candles cannot identify the source. Selling ceasing is not persistent aggressive buying, and short covering does not guarantee continuing demand. Clearing local resistance and holding higher after return strengthens accumulation; an additional test whose reaction does not restore the earlier decline can add support. A test is optional. A long lower wick, breached low, or single low-volume bar alone is insufficient confirmation.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
10 lessons · Chapter contents
01Why a Candidate Spring Can Fail↗02Why a Candidate UTAD Can Fail↗03Why Breakouts or Breakdowns Lack Continuation↗04Ambiguous Phases and Drifting Boundaries↗05Timeframe Conflict Is Not Majority Voting↗06Costs, Room, and Execution Constraints↗07Data Quality and Market-Rule Constraints↗08Portfolio Risk Can Veto an Individually Qualified Trade↗09Technical Review of Losing and Winning Trades↗10Technical Reasons to Stand Aside and Conditions for Resuming↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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Analysis and Trading Decisions Within a Complete Structure
