A range after an advance in which demand is absorbed. Typical events: preliminary supply (PSY), buying climax (BC), automatic reaction (AR), secondary test (ST), upthrust (UT), upthrust after distribution (UTAD), sign of weakness (SOW) and last point of supply (LPSY), followed by markdown.
How traders use it: A UTAD followed by a sign of weakness is the textbook sequence before markdown.
Common mistake: Shorting the first upthrust in a range that later turns out to be re-accumulation.
Related: Upthrust (UT) / upthrust after distribution (UTAD) · Wyckoff phases A–E · Sign of strength / weakness (SOS, SOW), LPS and LPSY
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.