Question

The box size is $0.50 and the reversal size is three boxes. What is the price objective for the breakout using the horizontal count method?

$19.00

$21.50

$12.50

$22.00

1000 Do 1100 X8Xox 4800 4700 4600 45.00 44OOG 43.000 420002 41.00 3900 3800 37.00 36.00 5.00 1600000888886- 4300 'ooooo XXXX MOK 00 २०००-6060 300 3200 3100 30.00 2000 28.00 ००००००० ००० ००००००००००० ०००००००००००००० ००००००० 107.00 13600 TOS00 104.00 10300 10200 101.00 100.00 12000 .2000 127.00 12600 26.00 12000 24.00 23.00 21.00 20.00 1950 1000 122.00 12100 xxx-60०. 12000 :: 16.00 1750 1700 ०००००००००००००००० 16.00 1550 2500 1450 १९४१: 1950 13.00 12.10 12.00 -9990००० ००००००००००० 11.00 2010 1000 900

Answer 1

Answer: Option A: $19

- The first step is to recognize horizontal congestion and looking out for a buy signal.
- Then after getting a breakout, the number of columns across the range should be counted, i.e., 7.
- Then the number of columns should be multiplied with the reversal size, i.e., 3.
- The resulting figure should then be multiplied with the box size, i.e., 0.5.
- The final number needs to be added to the lowest box of the range, i.e., 8.5.

Therefore, the number comes out to be = (7*3*0.5) + 8.5 = 19.