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Wyckoff Stock Trading Strategies
An Upthrust can occur anywhere in the trading range. However, an Upthrust after Distribution occurs at the end of a period of distribution and marks the beginning of the decline. To identify an Upthrust after Distribution you need five things.
- A Buying Climax
2. A cause or potential for a move (point and figure chart).
3. An attempt to leave the top of the trading range. This penetration should be in new high ground. It does not, however, have to be in all-time new high ground (relative to the trading range). As it makes this attempt, you should see a narrowing of the price spread relative to the volume.
4. The price action should then return to the average level of closes.
5. In addition, the price action of the trading range should be tight. In other words, you do not want a wide trading range. The narrower the better for this principle.
Stated in paragraph form:
After a stock moved up, climaxed, has then moved laterally and built a potential cause, to then moved into new high ground on a increase in volume and a relative narrowing of the spread, to then return to the average level of closes would indicate that the entire lateral level was not accumulation, but was distribution instead.