easy · Volume Price Analysis
A trader is calculating a target for a breakout from a 3-month consolidation range that is $5.00 wide. The breakout occurs at $45.00 on strong volume.
Using the Law of Cause and Effect, what is the minimum expected move?
- A move to $50.00, based on the height of the consolidation
- A move to $47.50, representing half the range height
- A move to $55.00, doubling the consolidation height
- A move back to $40.00 as the breakout is likely to fail
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