What it means
Sign of weakness is the topping equivalent of SOS — a strong downward move that breaks below the distribution range's support (the AR low), on expanding volume. SOW confirms distribution is complete and markdown is beginning. The move typically continues without significant rally for several sessions as institutional supply continues to dominate.
Why it matters
SOW confirms the topping hypothesis established by upthrust/UTAD. Before SOW, the short entry is anticipation; after SOW, distribution is confirmed and short-positioning is structurally aligned. The volume expansion on SOW is the critical filter.
How to use it
After identifying distribution structure, watch for a strong close below the AR low with volume expansion. Add to shorts on the SOW close; stop above the most recent swing high; target = projected markdown based on distribution range height.
Want a worked example or a deeper dive? Ask Rocky how this concept applies to your specific watchlist or trade idea.
Ask Rocky