Wyckoff Accumulation occurs after a prolonged downtrend. Smart money absorbs supply from panicked retail sellers. The Spring (Phase C) is the hallmark event — a deliberate false breakdown below support that traps shorts and triggers stops, giving institutions a final opportunity to accumulate at the lowest prices before markup begins.
Law 1: Supply and Demand — price moves because of imbalances between buyers and sellers. When demand exceeds supply, price rises. When supply exceeds demand, price falls. Law 2: Cause and Effect — a trading range (cause) leads to a trending move (effect). Larger ranges lead to larger moves. Law 3: Effort vs Result — volume is effort, price movement is result. When high volume produces little price movement, the trend is exhausting.