Upthrust and UTAD

What it is

An upthrust (UT) is a push above the top of a range that closes back inside it. In distribution, upthrusts show up in phase B as price probes the highs.

The upthrust after distribution (UTAD) is a specific, later event: the final false breakout above the range in phase C, after distribution is complete, and the mirror image of the spring. It traps breakout buyers, and the markdown often follows quickly. The two are easy to confuse, but a UT is part of building the range, while the UTAD is the test at the end of it.

How to spot it

• A break above the range high with a close back inside.
• A UTAD comes late, often after earlier upthrusts and signs of weakness, and is followed by a drop through the middle of the range.

How to use it

• Look for shorts after a UTAD once price falls back below the range high, with the stop above the UTAD high.
• Confirm with a sign of weakness (SOW) and enter on the weak rally after it (the LPSY).

Common mistakes

• Shorting every upthrust in phase B, where price usually stays in the range.
• Calling the UTAD before price has shown weakness back inside the range.

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