The Essence of Weak-to-Strong Reversals

What is the essence of weak-to-strong reversals? Two preconditions, two observable signs, one underlying logic, and one sustainability assessment.

Precondition 1: For a stock with consecutive limit-ups that broke its streak yesterday, there’s a possibility of a weak-to-strong reversal today—this is the most common scenario. If it’s a leading stock, the expectation is a first pullback followed by a rebound limit-up.

Precondition 2: For a stock with consecutive limit-ups that closed at the limit-up yesterday but with a weak or extremely high-volume board (at least 5x the previous day’s volume—standards vary), it’s considered a weak board. The next day, it may reverse into strength and continue to limit up.

Observable Sign 1: Strong positioning! Weak yesterday, strong today. For example, if it broke its streak and closed negative yesterday but opens 5% higher today, this is a direct weak-to-strong reversal. The opening position is strong—no need to overthink. Buy the dip on a pullback or chase the rise.

Observable Sign 2: Strong momentum! The auction pulls upward at the last moment, producing two outcomes: the direction shifts from down to up, and the volume is high with a strong push above the waterline. No doubt—it’s a weak-to-strong reversal. In this case, buy a batch during the auction and another after it breaks above the waterline.

Underlying Logic: Weak-to-strong reversals occur due to big capital self-rescue, shakeouts, or a change in short-term dominant players.

Sustainability Assessment: Whether a weak-to-strong reversal yields significant profits depends critically on whether the stock or sector still has growth potential or a sustainable upward logic. If not, it’s better to pass.

Summary: Mastering weak-to-strong reversals comes down to eight words: contrast, strength, and upward logic.