Finance•Chapter 3•4 min read

Advanced Ichimoku ③ — Price-Target Theory: V/N/E/NT Target Calculations

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Lesson 3 Overview: How Far Does the Market Go?

With wave (shape) and time (when) covered, the final pillar is price. Price-Target Theory (値幅観測論) uses the size of a prior wave to calculate the next target price range.

1. The Three Reference Points

Price-Target Theory works off the three turning points of the most recent wave.

Example,in an uptrend:A=starting lowB=first rally highC=correction low(the pullback offB)→TheA→Brally and theB→Ccorrection are used to calculate the next target\begin{aligned} &\text{Example}, \text{in an uptrend}: \\ A &= \text{starting low} \\ B &= \text{first rally high} \\ C &= \text{correction low} (\text{the pullback off} B) \\ &\to \text{The} A \to B \text{rally and the} B \to C \text{correction are used to calculate the next target} \end{aligned}

2. The Four Calculated Values

ValueFormula (uptrend)Meaning
VC + (B − C)Retraces the correction’s size (double-top symmetry)
NC + (B − A)Adds the first rally’s size to C (the most fundamental)
EB + (B − A)Adds the first rally’s size to B (a multiple extension)
NTC + (C − A)Adds the A→C span to C

Typical ordering: V < N < E (E is usually the highest target)
NT matters most when the correction is shallow.

3. Worked Example

A=100B=130C=120−First rally(B−A)=30correction(B−C)=10V=C+(B−C)=120+10=130N=C+(B−A)=120+30=150E=B+(B−A)=130+30=160NT=C+(C−A)=120+20=140→Target range:130(V)⋅140(NT)⋅150(N)⋅160(E)\begin{aligned} A &= \frac{100}{B} = \frac{130}{C} = 120 \\ - \text{First rally} (B−A) &= \frac{30}{\text{correction}} (B−C) = 10 \\ V &= C + (B−C) = 120 + 10 = 130 \\ N &= C + (B−A) = 120 + 30 = 150 \\ E &= B + (B−A) = 130 + 30 = 160 \\ NT &= C + (C−A) = 120 + 20 = 140 \\ &\to \text{Target range}: 130 (V) · 140 (NT) · 150 (N) · 160 (E) \end{aligned}

4. Using Target Prices in Practice

  • When several calculated values cluster in one price zone, that zone becomes a strong target/resistance area
  • Confidence rises further when it overlaps with the Cloud, a prior high, or other resistance
  • Reaching a target while also hitting a change day (Time Theory) is a zone to watch for an exit or reversal

5. Applying It to a Downtrend

Flip the uptrend formulas left-right and top-bottom, and you get downside targets.

DownsideN=C−(A−B)(A = starting high, B = first decline low, C = bounce high)→Only the sign flips;the logic is identical\begin{aligned} \text{Downside} N &= C − (A − B) \quad \text{(A = starting high, B = first decline low, C = bounce high)} \\ &\to \text{Only the sign flips}; \text{the logic is identical} \end{aligned}

This Lesson’s Key Takeaways

  1. Price-Target Theory calculates the next target price range from the size of the prior wave.
  2. The reference points are the starting point (A), the first high (B), and the correction low (C).
  3. Among the four values — V, N, E, NT — N is the most fundamental, and E is typically the highest target.
  4. Where multiple calculated values cluster, or overlap with the Cloud or a prior high, that’s a strong target/resistance zone.
  5. Reaching a target while a change day converges is a zone that calls for caution around reversals or exits.

Next lesson: We return from theory to the lines themselves — how the Tenkan-sen, Kijun-sen, Chikou Span, and Senkou Span interact, and a more precise way to read bullish and bearish crosses.

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(Verified: June 2026)

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