Signs of strength and last points of support (SOS, LPS, SOW, LPSY)

What it is

A sign of strength (SOS) is an advance on wider bars and rising volume, usually through the top of an accumulation range. The last point of support (LPS) is the pullback after it: a higher low on lighter volume, where buyers step back in. It's the classic Wyckoff entry for the markup.

In distribution it's the mirror. A sign of weakness (SOW) is a drop on wider bars and rising volume to or through the range low. The last point of supply (LPSY) is the weak, low-volume rally after it, the place to sell before the markdown.

How to spot it

• SOS: strong bars and heavier volume breaking the range high.
• LPS: a shallow pullback that holds above the old range top (or near it) on lower volume.

How to use it

• Buy at the LPS, with the stop below it, aiming for the trend out of the range.
• Sell at the LPSY, with the stop above it.

Common mistakes

• Buying the SOS bar itself, far from the stop.
• Taking a pullback on heavy volume as an LPS; it should be quiet.

Related