A jump is a relatively wider price-spread move made on comparatively higher volume that penetrates outer resistance or support. A backup is a test that immediately follows the jump — a relatively narrower price-spread reaction or rally on comparatively lighter volume that tests and confirms the legitimacy of the preceding jump action.

The Wyckoff method instructs you to buy after a backup following an upward jump (a sign of strength) or to sell short after a backup following a downward jump (a sign of weakness). Also according to Wyckoff, you should not buy breakouts because that would leave you vulnerable to swift moves in the opposite direction if the breakout turned out to be false. Hence, at first glance, the Wyckoff method appears to be telling you to buy into weakness and sell into strength.

The prospect of buying into weakness or selling into strength can be very unnerving for many traders. We'll attempt to provide some guidance that will help you gain the necessary patience and confidence to wait for and act upon the backups that follow the jumps.