Definition
An upthrust is a wide up-spread move through a prior high or resistance that is rejected and closes in the lower portion of the bar. High relative volume shows substantial effort, while the weak close shows supply overcame the advance.
Market psychology
Breakout buyers are drawn in as professional selling meets the rally. Their trapped demand helps distribution, and bearish follow-through confirms the weakness.
Recognition rules
- Trades to a new local high or through resistance
- Closes in the lower third of a wide spread
- Volume is high relative to recent bars
- Later bars confirm with inability to regain the high or a decline
Common mistakes
- Calling every upper wick an upthrust
- Ignoring strength in the background or missing follow-through
Teaching example
Loading OHLCV chart…
Read a text alternative
The high-volume breakout does not hold. Exceptional effort produces rejection rather than continued progress, and subsequent lower closes confirm distributional weakness.
- Market phase
- Distribution
- Pattern
- Upthrust
- Timeframe
- H4
What makes the high volume bearish on a valid upthrust?
High effort produced rejection and a poor close, showing supply overcame demand.