A range after a decline in which supply is absorbed. Typical events: preliminary support (PS), selling climax (SC), automatic rally (AR), secondary test (ST), spring, sign of strength (SOS) and last point of support (LPS), followed by markup.
How traders use it: A spring followed by a successful test and SOS is the classic structure people look for before expecting markup.
Common mistake: Calling every range after a drop "accumulation". It can resolve lower.
Related: Spring (Wyckoff) · Wyckoff phases A–E · Sign of strength / weakness (SOS, SOW), LPS and LPSY
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.