Upthrust and UTAD: the context of a failed upside break

An upthrust (UT) moves above range resistance and returns inside. UTAD (Upthrust After Distribution) names a late such event within an interpretation of developing distribution. Not every UT is UTAD.

Geometry and process stage

In a hypothetical 100–110 range, price reaches 112 and returns to 108. The penetration and return are observable. Calling it UTAD also requires range context and grounds for identifying a late demand test.

One candle above 110 and back cannot prove completed distribution.

Four examples: return after a break below support, maintained downside break, return after a break above resistance and maintained upside break.
AI-generated synthetic diagrams. A is a spring candidate; B a downside break without return; C an upthrust candidate; D an upside break without return. Dashed lines mark a previously chosen boundary. Geometry does not prove accumulation or distribution.

After the return

Compare renewed upward progress, movement ranges and activity on the subsequent decline. Weaker advances and SOW fit a distribution hypothesis, but do not make a decline inevitable.

Duration depends on scale. The educational distinction is return inside the chosen range, not one universal time limit.

Counterexample: holding above resistance

If price reaches 112, stays above 110 and advances, the required return is absent. Crossing the level alone is not a UT.

If a return did occur but a later move holds above resistance, revise the broader distribution interpretation. The earlier return remains an observed fact; its meaning changes.

Avoid unsupported claims

A wick above a high does not prove a deliberate trap, manipulation or sales by a specific institution. Distribution can also develop without UTAD or a new high.

See Bruce Fraser’s definitions. Next: SOW and LPSY.

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