Chart 1 is a Wyckoff style upthrust - which is the price action itself moving above a previous resistance level, but failing (as opposed to a VSA style upthrust, which is the shape of the actual bar).. It the case above, price made a high, then pulled back, so a line was drawn across the high, to signify where sufficient resistance was met to push price lower. Then when price again challenged this line a second time, but failed, it could be said that "price upthrusted the previous high"
A Wyckoff style upthrust is the mirror image of a spring, and the depth of the penetration is significant to both - where a very small penetration is generally considered to be more powerful than a deep penetration.
An upthrust such as this is often an ideal position to consider opening a short position (just as a spring is often an ideal place to consider a long position).
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