What is the Last Point of Supply (LPSY) in Wyckoff?
The Last Point of Supply is the final weak rally within a distribution range before a potential markdown. Buyers try to push price higher but fail to reach the prior high, suggesting that sellers control the range.
How It Works
In a Wyckoff distribution interpretation, an LPSY is a weak rally after a Sign of Weakness (SOW). Traders compare its reach and volume with earlier rallies and watch whether former support acts as resistance. A lower high on lighter volume may support that interpretation, but it does not identify who is trading or prove that a markdown will follow. An LPSY differs from the Last Point of Support (LPS) in accumulation: one describes a weak rally, the other a pullback within an accumulation interpretation. Read the surrounding range and timeframe before applying either label. A nearby invalidation level does not guarantee a small loss; position size, execution and slippage still matter.
Why It Matters
The pattern offers a way to organize an observation and define what would contradict it. It is not a confirmed prediction or an instruction to sell.
Common Mistake
Calling every bounce an LPSY. Compare the rally with the surrounding range, and record what price action would invalidate your interpretation.
Example
Supporting scenario: after a SOW, price rallies toward former range support, stalls below the earlier high and weakens on lighter volume. This is consistent with an LPSY interpretation. Contradicting scenario: the rally reclaims the old range, reaches its midpoint on stronger volume and holds there. Reassess the distribution interpretation rather than forcing an LPSY label. Neither scenario guarantees the next move.
Stoic Insight
Separate what the chart shows from what you expect. Write down the evidence for your interpretation and the evidence that would change your mind.
Ready to Trade?
Apply what you've learned on a demo or live account with StoicFX.