A Sign of Strength (SOS) is a strong, wide-range rally on rising volume out of an accumulation range. It signals that demand has taken control and the markup is beginning.
How traders use it
- Wide up-bars on expanding volume mark the SOS.
- It often follows the spring.
- It confirms the shift from accumulation to markup.
See it in dtcharts
Track accumulation and distribution ranges on any chart in the dtcharts terminal with the drawing tools.