What it means
Sign of strength is a strong upward move that breaks above the accumulation range's resistance (the AR high), on expanding volume. SOS confirms that accumulation is complete and the markup phase has begun. The move typically continues in the direction of the SOS without significant pullback for several sessions — the institutional flow that accumulated through the range is now actively driving price higher.
Why it matters
SOS is the confirmation signal that lets traders add to long positions established at Spring with conviction. Before SOS, the spring entry is hypothesis; after SOS, the hypothesis is confirmed and position-adding has lower risk. Volume expansion on the SOS is the critical filter — SOS without volume expansion often fails.
How to use it
After identifying accumulation structure, watch for a strong close above the AR high with volume ≥30% above 20-day average. That's SOS. Add to longs on the SOS close; stop below the most recent swing low; target = projected markup based on accumulation range height.
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