Advanced
Context
A market has spent time in a range after an advance. Price moves above resistance and then fails to hold the breakout.
Illustrative campaign snapshot 4: the structure is synthetic and designed only to isolate the evidence sequence for upthrust after distribution.
Evidence to read
- push above resistance attracts activity but closes back into the range
- volume expands near the high without sustained progress
- next bars show poor demand or renewed supply
Expert read
The action may show professional selling into breakout demand and can warn of distribution.
Alternative interpretation
It may be a normal breakout test if price quickly recovers the level and holds above resistance.
Confirmation required
- weak rally back toward the upthrust area
- down bars show result after the failed breakout
- range midpoint or support begins to fail
Invalidation signs
- acceptance above resistance
- low-volume pullback that holds the breakout
- fresh demand with wide spread up and strong close
Common traps
selling the first breakout failure without background
ignoring broad market strength
forgetting that upthrusts can be tested several times
Source frame
Wyckoff/VSA educational frame: background first, effort versus result second, confirmation third, risk and invalidation always explicit.