Sign of Strength (SOS): after accumulation completes, price advances with wide range and expanding volume. The first clear evidence institutional buying has overwhelmed supply. Enter on the pullback (Last Point of Support) following the SOS.
- Wyckoff accumulation range completed (Phases A-D)
- Price breaks above trading range resistance with wide-range bar
- Volume expands on breakout (>1.5ร 20-period average)
- Range of breakout bar > 1.5ร ATR(14). Shows urgency
- After SOS, wait for pullback toward former resistance (now support)
- Pullback holds above former resistance with reduced volume
- Enter long on bullish reversal at Last Point of Support
- Stop: below the pullback low
- Target: measured move equal to accumulation range height
The SOS must happen AFTER the accumulation structure completes. Breakouts without prior accumulation are just random breakouts, not Wyckoff signals. The clearer the trading range before the SOS, the stronger the subsequent markup phase typically becomes.