Wyckoff basics: accumulation, the spring and markup

Richard Wyckoff observed that large operators cannot buy everything at once. They accumulate inside a range, then mark price up. At the top, they distribute inside another range before markdown.

1. Phase ASelling slows: preliminary support, a selling climax and an automatic rally define the range.
2. Phase BBuilding the cause: price moves inside the range while positions are built.
3. Phase CThe test: often a spring, a quick break below the range that traps sellers and takes their stops.
4. Phase DStrength appears: higher lows and a push towards the top of the range.
5. Phase EMarkup: price leaves the range and trends.

After a long fall, gold stops making new lows and moves sideways for several days between a clear high and low. Volume spikes on a hard drop at the start of the range, then calms down. This looks like phases A and B.

Then price breaks below the range low, triggers the stops below it, and snaps back inside within a few candles on strong volume. That is the spring, phase C. A higher low follows and price pushes towards the top of the range: phase D.

The break and retest of the range high is where many traders look for entries, using order blocks and FVGs formed during that push.

• Labelling phases too early. Wyckoff is clearest in hindsight. Wait for the structure to confirm.
• Assuming every range is accumulation. Ranges after a rally are often distribution.
• Buying the break below the range. That is often the spring that traps sellers, not a buy signal on its own.
• Ignoring volume. Wyckoff and VSA work together; the volume tells you who is in control.

Each range has named events: the climax that stops the trend, the automatic rally or reaction that sets the range, the secondary tests, the spring or upthrust that shakes out the last traders, and the sign of strength or weakness that starts the new trend. RTC AI finds and labels them automatically.

A spring is a liquidity sweep with a name. The break of the range high in phase D is a break of structure. Traders use Wyckoff to understand the bigger picture of a range, and SMC and VSA to time the entry.