For chart patterns as in Time techno discussed above with the Wycoff spring pattern, at the time of breakout its difficult to make out before hand if it is a genuine breakdown or just a shakeout. However a small clue that often helps is that there is no major follow through fall on breakdown.
We have to consider the time frame we are interested in. In case of Time techno, since it was a daily pattern, we have to keep looking at signs of reversal on a daily time frame. As we can see, the stock price quickly climbed back into the channel post the transient breakdown. We still may not be out of the woods. Confirmation will only be once the stock price goes above the higher range of the channel, which in case of Time techno is around 187-188.
A nice example of spring action on charts of Wipro on weekly GMMA chart is attached to illustrate above point. Note the region between the two solid green lines and a brief dip below the trading range. The spring action can be in the middle or at end of consolidation range.
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