Trade of the Week – LRCX Lam Research US Stock Ichimoku 6 Time frame Buy . On Dec 20, 2016, we received a Ichimoku 5 time frame buy signal our iMTF™ strategy finder. Here is the email alert:
On all the time frames, there really was not a cloud strategy. The reason is that it was a trend continuation trade within a big consolidation pattern. The first real trade occurred Dec 12. Here was the email from then:
Here is the 4h chart setup from Dec 12 where the blue arrow shows when the email alert was received:
Once the target was reached for the Dec 12 target, price decided to consolidate. During the consolidation pattern, another setup occurred once the Kijun Sen moved up to the value of 106.44 which was the gap low bar. That is when we setup for a trend continuation trade with a low risk. Since this is retesting the high again, we are going to use the level of 107.96 as a preserve mode instead of a target. In another words, we will take at least 50% of our positions off when it gets to that level and tighten our stop so we don’t go “round trip”
Here is the 60m chart where we setup the trade:
The trade entered Dec 21, and the we are in preserve mode now. Notice, the dots moved higher so it shows the day/swing supports are going higher which is exactly what we need to break the last high.
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