Lesson / WY-03-16
A Sign of Strength (SOS) can be one bar or a complete advance. A previous local high or upper boundary marks where buyers previously stopped progressing: offers, aggressive selling, or buyer withdrawal were sufficient to halt further upward movement. Clearing that area and continuing to trade at higher prices shows that the old opposition has at least lost its former effectiveness and buyers' ability to lift price has visibly changed. One wide-spread up candle can be an SOS bar; a sequence of progressively higher highs and lows eventually crossing resistance can be an SOS swing. SOS is named by function, with no fixed candle pattern or requirement for a preceding Spring. A structure that never broke its lower boundary can likewise move directly from a supply test into strength.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
7 lessons · Chapter contents
01How Phase D Builds on the Earlier Structure↗02Sign of Strength: SOS↗03Last Point of Support: LPS↗04Comparing the Strong Advance and Pullback↗05Jump Across the Creek and the Breakout Retest↗06Internal Strength Versus Actual Departure↗07Multiple LPSs, Deep Retests, and No Follow-Through↗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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The Accumulation Structure and Phase A
Phase B: Tracking Supply and Demand Within the Range
