Calculating Target for Range BreaksRange bound market is a very common scenario. A range comprises an upper boundary and a lower boundary. You would be able to draw a rectangle by connecting these boundaries. The market starts oscillating with in this rectangle. Ultimately the fight between bulls and bears ends with a breakout in one direction.
New traders are often confused about the target in the above cases. Although its very difficult to arrive at one particular method to calculate targets yet one of the easiest 4 step method is given below.
1️⃣Find the upper and lower boundary levels of the range
2️⃣Find the distance between these boundaries by subtracting the two levels
3️⃣Add the result to the upper boundary level
4️⃣And the result would be your target for the range break
By applying this method, a target for the above BankNifty chart comes out to be around 41500
I hope it was useful
Thanks for reading
@Bravetotrade
