medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
An 'Up-Thrust After Distribution' (UTAD) is identified at the end of a sideways range.
What is the professional intent behind marking the price above the range high before the mark-down begins?
- This signals to other trading syndicates that the mark-down phase is now formally authorized.
- It is one last test of the resistance's strength, confirming to the operator that no further supply remains at all.
- To trigger buy-stops of short-sellers and draw in 'breakout' buyers to provide liquidity for final sales.
- It lets market-makers hedge their delta-neutral option books ahead of the coming decline's added volatility.
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