Monday, November 24, 2014

A textbook example of the breakout pullback setup: PTX

Swing traders must have a basket of setups in order to trade consistently and successfully.  One of my favorite setups is the "breakout-pullback" setup.  I recently went over the specifics of this setup on the BullsonWallStreet site, where my buddy Kunal hosts my Swing Trade Service.

PTX is a good example of this setup.  It broke out on strong volume and has now pulled back in orderly volume on low volume.  This is the type of price and volume action we went to see for this setup.

If entering here, a stop can be placed under $10, with an initial target at $11.50.  This gives us around 4:1 reward to risk.  That's what we love about this setup, we risk little to gain a lot.

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