A price low formed on a chart that shows signs of insufficient selling conviction, typically characterised by overlapping candles, declining volume, or visible buying absorption near the low. In ICT and smart money concepts, a weak low is expected to be violated as it represents an area of resting sell-side liquidity from stop losses placed below the low. Traders anticipate that institutional participants will drive price through weak lows to fill orders before reversing.
Example
“The weak low at $22,400 on Bitcoin was swept during the Asian session, triggering a cascade of stop losses before price reversed sharply higher by $800.”