By Barrie Einarson | Trade Ideas

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Today’s edition of “What Makes This Trade Great” looks at LFS — and this one’s a great use case for our daily trend reversal scan, plus a nice lesson on trading VWAP. To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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The Setup

This came in on the daily trend reversal scan right at 9:30, with the alert price at $2.47.

Taking a look at the daily chart, you can see what the scan is looking for: LFS was down at least 5% the day before, and then up today. That’s the classic setup for a daily reversal — a stock getting sold off, then flipping direction.

The Move

If you’d taken the trade right around that $2.47 alert, before any pullback at all, LFS ran all the way up to $3.16. That’s a strong move straight out of the gate.

The VWAP Angle

Here’s where it gets interesting for VWAP traders. The stock came back down and tested the VWAP (that purple line on the chart) — and held it. So even if you missed the initial move, that VWAP hold gave you a second chance to get in, take some profit along the way, and stay with the trade as it kept ripping higher.

The Takeaway

This one worked on two levels: the daily reversal scan caught the setup early, and VWAP gave a clean, low-risk entry for anyone who missed the first leg. When a stock holds VWAP after a strong reversal move, that’s often a sign there’s more room to run — and LFS delivered on that.

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Trade Ideas’ AI-driven scans, including daily trend reversal setups, are designed to surface moves like this one as they happen. As always, past performance on any single trade doesn’t guarantee future results — manage your risk accordingly.