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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