Sign of Strength

A Wyckoff term for a decisive price advance on expanding volume that breaks above the accumulation trading range — confirming that institutional demand has overcome supply and the markup phase is beginning.

The Sign of Strength (SOS) is the confirmation event that follows a Spring or the later stages of accumulation. After the Spring shakes out weak holders, a strong advance develops — typically breaking above the resistance level of the accumulation range — on volume that expands meaningfully relative to recent bars. This is the institutional buyer stepping in aggressively, no longer hiding their demand as they were during the accumulation phase. The SOS tells Wyckoff analysts that the cause-building phase is likely complete and markup is underway.

Key characteristics of a valid SOS: wide price spread (the bar covers significant ground), closing near the high of the bar, high volume relative to recent context, and — critically — the advance carries into or through the resistance of the prior trading range. A breakout on light volume is suspect; an SOS on expanding volume is meaningful. The SOS often produces a "jump across the creek" in Wyckoff terminology — the breakout from a trading range viewed as a stream that has been crossed.

Following the SOS, Wyckoff traders watch for a "Back Up to the Edge of the Creek" — a pullback toward the breakout level that holds as support on diminished volume. This Back Up, also called the Last Point of Support, is the optimal low-risk entry for markup: tight stop below the spring/accumulation lows, entry near the pullback low, with the full markup phase ahead. The SOS defines the structure; the Back Up defines the entry.

This definition is for informational and educational purposes only. Nothing on Finance Compass constitutes financial, investment, or trading advice. Always conduct your own research and consult a qualified professional before making financial decisions.