hard · Volume Price Analysis wyckoff-laws
A stock has completed a textbook distribution range and breaks down decisively. It then rallies back up to the lower boundary of that former range on declining volume, stalls, and turns down again.
In Wyckoff phase terms, this back-up most precisely corresponds to which event, and what is its diagnostic significance?
- A Last Point of Supply (LPSY) — the former support, now resistance, is retested on weak demand, confirming the markdown phase has begun
- A secondary test within Phase B of accumulation, showing the base is still quietly building cause toward a later markup advance
- An Upthrust After Distribution (UTAD), marking a final bull trap that fails decisively right at the very top edge of the prior trading range
- A Sign of Strength (SOS) back-up, confirming that demand has fully and decisively overwhelmed all the supply that once capped the range from above
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