What to do when we see an Upthrust”.

We looked at the Upthrust and Pseudo Upthrsts.. We also looked at what to look for in an Upthrust Bar.

The obvious next question would be “What to do when we see an Upthrust”.

The next bar after the UPthrust is very important. That helps us decide our action.

If the next bar is a Downbar closing down it is clear that the weakness and set in and the immediate trend is reversing. Here again the volume is an important indication. If the volume is high then it time to get out and wait to short. If the volume is low the weakness is not so pronounce and it may be worthwhile to wait and watch next bar movement. Here the spread and the position of Bar also give clues. If the Bar is wide closing down the weakness is more pronounced. Also if the high of the bar is towards the low of the Upthrust bar the weakness is enhanced.

If the down bar is with low volume and closing Up then the weakness of the upthrust bar is still in question. We have to wait for the enxt bar for confirmation.

If the Bar after the Upthrust bar is an Upbar closing up then it would mean that the weakness projected by the upthrust is negated