What levels the price will reach after a trend line breakout: TD-Price Projector 1

When a TD line breakout is identified as true, the next step is to set the breakout price objectives, i.e. to what the levels the price will move in the direction of the breakout.

There are three methods to calculate the price objectives after a true trend line breakout. They are called TD price projectors (Figure 1).

TD-price projector 1 is not very precise in comparison to other projectors, but it is simple to calculate:

For an upside breakout TD-Price Projector 1 is calculated as follows: the distance from the lowest price below the TD-line to the price point on the TD-line immediately above it is added to the price at the point of TD-Line breakout.

For a downside breakout TD-Price Projector 1 is calculated as follows: the distance from the highest price above the TD-line to the price point on the TD-line immediately below it is subtracted from the price at the point of the TD-line breakout.