Wyckoff Theory
Master the art of reading institutional footprints through Wyckoff methodology. Understand accumulation, distribution, and trade with smart money.
The final rally before markdown begins
What It Is
The Last Point of Supply is the mirror image of LPS. It's the final rally attempt before the markdown phase begins—a weak bounce that fails to reach previous highs. LPSY is characterized by a lower high—price doesn't return to the range highs. Volume is notably low, confirming no buying pressure remains. This is where Smart Money distributes their final positions. The LPSY often tests previous support (now resistance) from inside the range. When it fails, the stage is set for markdown.
Last Point of Supply (LPSY) - Visual
Price Behavior
- Lower high compared to previous tests
- Weak, sluggish rally
- Stays below Upthrust high
- Often tests previous support as new resistance
- Quick rejection after the test
Volume Behavior
- Very low volume—the key characteristic
- Shows no buying interest remains
- Confirms demand is exhausted
- Volume expands when markdown resumes
What It Means
- Demand is exhausted
- Smart Money distribution is complete
- Downtrend is ready to begin
- Low-risk exit or short opportunity for prepared traders
LPSY should show clearly lower volume than any previous rallies. If volume expands on the rally, more demand may exist, and the markdown may be delayed.
Educational Reminders
- Events must be read in CONTEXT—individual events mean nothing without the surrounding structure
- Volume is your truth detector—always compare current volume to previous events
- Multiple events together build a story—SC + AR + ST + Spring = Accumulation
- Events in distribution are mirrors of accumulation events
- Practice identifying events on historical charts before trading live
- These are observation tools, not automatic trade signals