A Sign of Weakness (SOW) is a strong, wide-range decline on rising volume out of a distribution range. It signals that supply has taken control and the markdown is beginning.
How traders use it
- Wide down-bars on expanding volume mark the SOW.
- It often follows the upthrust.
- It confirms the shift from distribution to markdown.
See it in dtcharts
Track accumulation and distribution ranges on any chart in the dtcharts terminal with the drawing tools.