Volume Trading: Up-Thrusts, or How to Check the Strength of a Pin Bar

We continue studying the topic of volume trading in forex, namely the VSA methodology. This time we will talk about the Up-Thrust pattern, its varieties, practical application, and of course extracting profit from the market with the help of this setup.

Before studying the Up-Thrust setup, I strongly recommend familiarizing yourself with the previous materials on the topic:

Up-Thrust is a VSA reversal setup, characterized by a large candle (wide spread) with a close near the Low, accompanied by relatively high volume. It often appears after strong bullish moves and signals a possible change in the bullish trend. The closer the bar closes to the Low point, the stronger the formation.

Market makers absorb the crowd's buying, either by exiting their own buys (buying climax), or by entering sells on the formed liquidity. Both can lead to the beginning of a bearish move. But before opening sells, we need to wait for confirmation of the setup (see below).

Reverse Up-Thrust is the mirror opposite of Up-Thrust. It signals a possible change in a bearish move. It has the same properties as Up-Thrust.

Pseudo Up-Thrust is an Up-Thrust on low volume. It is not as effective, but it can also be regarded as a sign of reversal.

After the Up-Thrust forms, watch the next bar:

1) If the next candle is a downbar with a close near the Low, then the market's weakness can be considered confirmed. If its volume is high, it is time to sell; if not, it is worth waiting for one more candle. We are interested in the appearance of a downbar with high volume and a close near the Low.

2) If the next candle after the up-thrust (or the second candle after the up-thrust) is an upbar or a downbar with a close near the High, then the weakness in the market is insufficient and it is not worth considering sells yet.

P.S. For the reverse up-thrust everything is the same, but in mirror image.

The VSA Up-Thrust setup is quite strong, but you should not enter the market without confirmation. Factors that also strengthen this pattern are:

And, what is also important, knowing how to work with the Up-Thrust helps determine the strength of pin bars. By analyzing the presence or absence of volume and the subsequent candles, we can draw conclusions about whether it is worth entering the market or not.

Respectfully, Pavel TradeLikeaPro.ru