---
title: "Continuity + Signals + Broadening Formations"
canonical: https://thestrat.ai/docs/continuity-signals-broadening-formations/
updated: 2026-10-22
author: Alex Sopa (AlexsOptions)
source: TheStrat docs (https://thestrat.ai/docs/)
---

Tools for AI agents: https://mcp.thestrat.ai — see https://thestrat.ai/agents/

# Continuity + Signals + Broadening Formations

By [Alex Sopa (AlexsOptions)](https://thestrat.ai/docs/alex-sopa/) · Updated October 22, 2026

**Definition** Continuity + Signals + Broadening Formations is all of TheStrat at once. [Continuity](https://thestrat.ai/docs/full-timeframe-continuity/) is the evidence. The [signal](https://thestrat.ai/docs/actionable-signals/) is the timing. The [broadening formation](https://thestrat.ai/docs/price-discovery-broadening-formation/) is the map: where price goes and how far.

**Take reversals back in the direction of full timeframe continuity, out of broadening formations.** One or two of the three is not enough. All three must line up.

## The clean example: five steps

1. Draw the [broadening formation](https://thestrat.ai/docs/price-discovery-broadening-formation/) lines right to left from the newest high or low. Redraw at each new high or low, and when price trades through a line.
2. A [signal](https://thestrat.ai/docs/actionable-signals/) forms at one line: bearish at the upper line, bullish at the lower line.
3. A bar closes beyond the trigger.
4. Price does not come back to the trigger.
5. Price reaches the other line.

Each example passes all five steps on real data. A 3 starts each formation.

## Weekly: a 2d-2u at the lower line

[Figure: XLF, week bars, Jul 10 – Dec 1 2023, real data (Alpaca SIP), built from the daily bars.]

The week of Oct 23 makes a new low at the lower line. The next week takes its high, 32.365 (a [2d-2u](https://thestrat.ai/docs/2-2-reversal/)), and closes at 33.78. Quarter, month and week are green. The lows stay above 33.46. The week of Nov 27 reaches the upper line, 35.78.

## Daily: a 2u-2d at the upper line

[Figure: MSFT, day bars, May 8 – Jun 9 2026, real data (Alpaca SIP).]

Jun 1 makes a new high at the upper line. Jun 2 takes its low, 458.27 (a [2u-2d](https://thestrat.ai/docs/2-2-reversal/)), and closes at 441.31. Month, week and day are red. The highs stay under 440.39. Jun 9 reaches the lower line, 398.33.

## Daily: a 2d-2u at the lower line

[Figure: XLB, day bars, Apr 25 – Jun 7 2019, real data (Alpaca SIP).]

May 31 makes a new low at the lower line. Jun 3 takes its high, 52.975, and closes at 54.41. Month, week and day are green. The lows stay above 54.68. Jun 7 reaches the upper line, 57.79.

## 60-minute: a 3-2d at the upper line

[Figure: XLE, 60-minute bars, May 29 – Jun 3 2024, real data (Alpaca SIP), built from the 30-minute bars.]

The last 60 of May 31 is a 3 at the upper line. The first 60 of June takes its low, 92.45 (a [3-2d](https://thestrat.ai/docs/3-2/)), and closes at 91.38. The highs stay under 91.60. Three bars later, price reaches the lower line, 90.37.

**Lower-timeframe signals change higher-timeframe colors.** The first 60 of June trades under the open. The new month, week and day turn red.

## Putting it together

- **Map:** the broadening formation. The other line is the target.
- **Evidence:** [continuity](https://thestrat.ai/docs/full-timeframe-continuity/). More timeframes aligned, more evidence. **Red gets redder:** to drop 10%, a bar must drop 5% first.
- **Timing:** the [signal](https://thestrat.ai/docs/actionable-signals/). Price is fractal: a lower-timeframe signal times the higher-timeframe move.
- **Cascade:** broadening formations form in series, in the direction of the higher timeframe. Each new one carries more continuity evidence.
- **Target:** out of the lower-timeframe formation, its chop ([corrective activity](https://thestrat.ai/docs/corrective-activity/)) is not the trade. Aim at the higher-timeframe target.

**Related:** [Full Timeframe Continuity](https://thestrat.ai/docs/full-timeframe-continuity/) · [Actionable Signals](https://thestrat.ai/docs/actionable-signals/) · [Price Discovery & Broadening Formations](https://thestrat.ai/docs/price-discovery-broadening-formation/) · [Signals + Signals](https://thestrat.ai/docs/signals-plus-signals/) · [Signals + Broadening Formations](https://thestrat.ai/docs/signals-plus-broadening-formations/) · [Corrective Activity](https://thestrat.ai/docs/corrective-activity/)
**Back to:** [Docs home](https://thestrat.ai/docs/)

TheStrat was developed by Rob Smith. These docs are written by Alex Sopa (AlexsOptions) and quote his teaching.