Lesson / WY-04-20
A Sign of Weakness (SOW) is action in which sellers gain relative advantage and materially lower price. Earlier local lows or the lower boundary mark where buyers previously stopped declines. Crossing that area and continuing to trade lower shows old buying support losing its former effect and a visible change in sellers' ability to depress price. Typical SOW has wide downward spreads, low closes, and increased volume while crossing local support or the lower part of the range. More trading produces a greater decline and changes the old rhythm in which price rallied whenever it reached the lower area.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
7 lessons · Chapter contents
01The Analytical Task of Phase D↗02Sign of Weakness: SOW↗03Last Point of Supply: LPSY↗04Symmetric Comparison of Downward Progress and Rally Quality↗05Rallying Back After a Support Break and Regaining the Range↗06Monitoring the Trend in Phase E↗07Consolidations, Rallies, and Candidate Redistribution During a Decline↗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 Distribution Structure and Phase A
Phases B and C: Upthrusts, UTAD, and Demand Tests
