Last Point of Supply
Volume Price Analysis glossary · Wyckoff'S Laws & The Four Market Phases
Definition
A lower high formed after a Sign of Weakness, where price retests prior support now acting as resistance; the ideal short entry in Wyckoff distribution.
Last Point of Supply in plain English
After a stock has topped out and big players have been quietly selling ('distribution'), price usually starts sliding down and shows a 'Sign of Weakness.' The Last Point of Supply is a bounce that fails: price climbs back up but stops at a LOWER high than before, right at an old floor that has now flipped into a ceiling. A helpful picture: a level that used to hold a ball up (support) now caps it from above (resistance). Wyckoff traders see this failed bounce as the cleanest, lowest-risk spot to bet on the coming drop — the ideal place to go short.
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