Upthrusts - Chart Reversal Pattern

Upthrusts Definition

An upthrust is a false breakout through a horizontal resistance area. The concept was first developed by Richard Wyckoff, who was one of the great stock operators from the early 19th century. The key component is an increase in volume on the false break of resistance and the subsequent return under the old high. The target for an upthrust is the low of the range preceding the false breakout. A stop loss can be placed slightly above the high of the upthrust bar. A knowledge of upthrusts can turn a false breakout into a profitable trading opportunity.

UpthrustsUpthrusts

 

Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

Tradingsim.com
Day Trading Simulator

Tradingsim.com provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.