Louisiana Pacific (LPX) TrendLPX has been in a very pronounced trend for a little over a year. I dont consider or range trades unless there have been at least 4 clean and easily identifiable "touches" on both ends of the trade. If they arent clean, they dont count although "close" can be counted as identified in the chart posting.
I do not like the spike in volume with the mini-candle from Friday. I like 3 days of sideways, low volume trading. However, this will get a look for potential entry.
I have been on hiatus for awhile but had I been in the market, I would have taken a trade on the "5th" lower touch of this chart and closed it on the intersection of the upper trend line. It fit my rules for this setup.
Anyway, the current trade would be triggered on a break above $105.30. The stop would be below the previous trend low ($96.90). Initial target is on the trend line intersection in the range of $125 - 128. Ideally, this should span 14-21 periods (3-4 weeks) to keep with the pattern.
NOTE -- The overall market conditions are sketchy. Keep tabs on the common indexes to ensure they are in concert with each other and in the direction you are looking to trade (long vs short). Right now, they are showing short term corrections so be wary.
