Sign of Strength (SOS)
Volume Price Analysis glossary · Volume Price Analysis
Definition
A wide-spread, high-volume up bar that decisively breaks resistance of the accumulation trading range — signals the beginning of markup.
Sign of Strength (SOS) in plain English
Picture a price that's been drifting sideways in a quiet range while big players quietly build up their positions (that quiet phase is called accumulation). A Sign of Strength is the moment the price finally punches UP through the ceiling of that range on a tall, wide candle with heavy volume — meaning lots of shares actually changed hands to power the move. The wide spread plus big volume is the tell: real buyers are committed, not just a lucky nudge. It signals the start of "markup," the sustained climb that follows — the market's way of announcing the boring waiting is over and the rise has begun.
Also called: SOS
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