In plain terms — After a strong advance, price reacts. If that reaction loses spread and volume near support, Wyckoff analysis may classify its low as an LPS.
Definition
The Last Point of Support (LPS) is the low of a reaction or pullback after a Sign of Strength. In the typical phase-D schematic, price returns toward support that often coincides with former resistance; spread and volume tend to contract relative to the SOS.
The word last does not mean that a chart must contain only one LPS. The same codification allows multiple LPSs in phase D and further reaccumulation structures during markup. The label describes a point where demand appears to absorb the reaction, not a certain final chance to buy.
Relationship with the back-up
Robert Evans called a return toward resistance crossed by the Jump Across the Creek a back-up to the edge of the creek. This back-up can coincide with an LPS. Not every LPS must touch the old level exactly, and not every pullback toward broken resistance is automatically an LPS.
| Observation | Contextual reading |
|---|---|
| Reaction narrower than the SOS | Relatively contained selling pressure |
| Diminishing volume | Consistent with less supply, not definitive proof |
| Support area holds | Keeps the phase-D structure plausible |
| Renewed upside expansion | Adds retrospective confirmation to the LPS label |
| Decisive loss of support | Weakens or negates the reading |
Teaching example — An SOS crosses 52 and reaches 56. The reaction stops at 53 on narrower bars and lower volume. This is a candidate LPS, not a guarantee: holding the area and later progress help confirm the label; a wide decline below 52 requires the structure to be reassessed.
Use and limits
- Without a prior SOS or equivalent show of strength, “LPS” risks being merely a name for a pullback.
- This entry treats lower volume and former resistance as contextual characteristics, not rigid thresholds.
- Wyckoff teaching may treat the location as offering an attractive risk/reward relationship, but entry and stop depend on the risk plan.
- The outcome cannot be inferred from the label assigned to the point.
The distribution counterpart is the Last Point of Supply (LPSY).
Sources
- Wyckoff Analytics — Wyckoff Method — LPS definition, phase D and multiple LPSs.
- StockCharts ChartSchool — The Wyckoff Method: A Tutorial — spread, volume, former resistance and the back-up.
- Hank Pruden — Anatomy of a Trade, Wiley — contextual use of resistance, ranges and trading judgement.
These sources document the label and reading process; they do not show that an LPS produces a favourable outcome.
Wyckoff Analytics and StockCharts publish substantially the same tutorial: they are cited as two locations for the same codification, not as independent confirmations. The Wiley DOI page exposes the metadata and publication record; the full text may require a subscription or institutional access.