Consider a broadening top with a high of 30 and a low of 24. After the price closes above 30, signaling an upward breakout, it opens the next day at 26, which serves as the breakout price. In a bull market, the upward breakout target is calculated as: B + ((H – L) * 64%) = 26 + ((30 – 24) * 64%) = $29.84. For a downward breakout, the target is: B – ((H – L) * 40%) = 26 – ((30 – 24) * 40%) = $23.60.
