Price Targets

Typically, the height of the broadening top or bottom is added to the breakout above resistance or subtracted to the breakout below support to arrive at a price target. However, Bulkowski (2008) offers the following calculated price targets based off of his historical chart research:

Broadening Top Breakout Upward: Price of Breakout Above Resistance + ((Highest High of Broadening Top Formation - Lowest Low of Broadening Top Formation) * 62%)

Broadening Top Breakout Downward: Price of Breakout Below Support Price - ((Highest High of Broadening Top Formation - Lowest Low of Broadening Top Formation) * 37%)

Broadening Bottom Breakout Upward: Price of Breakout Above Resistance + ((Highest High of Broadening Bottom Formation - Lowest Low of Broadening Bottom Formation) * 59%)

Broadening Bottom Breakout Downward: Price of Breakout Below Support Price - ((Highest High of Broadening Bottom Formation - Lowest Low of Broadening Bottom Formation) * 44%)