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.
Source and level — LPS is a reaction point in Wyckoff codification, not a guaranteed “last chance.” Classification requires comparison with the SOS and later behaviour; more than one LPS may occur.
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.