medium · Volume Price Analysis

An equity has traded in a horizontal range of $4.00 for six weeks.

Following a high-volume breakout, what is the minimum price target based on the Law of Cause and Effect?

  1. The previous major swing high or low on the weekly chart.
  2. A return to the Point of Control identified within the range.
  3. A move equal to the 20-day average daily range of the stock.
  4. A move of at least $4.00 from the breakout level.

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