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Broadening Formation Target Projection

Projected Target
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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

Learn more: See how broadening formations work in The Widening Channel.

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