Calculator
Broadening Formation Target Projection
How This Works
The Rule: Measure the formation height (high minus low). Project that distance from the breakout point.
- Bullish break: Target = Breakout Price + Formation Height
- Bearish break: Target = Breakout Price − Formation Height
This works because broadening formations represent expanding volatility. Once price breaks free of the expanding range, it often travels at least the distance of the range that contained it.
Worked Example
Formation High: 110.00
Formation Low: 100.00
Formation Height: 10.00 points
Breakout Price: 110.50 (bullish)
Calculation: 110.50 + 10.00 = 120.50