When defending I line my units up in the formation I want then start the game and alt click them into a more precise position. After this I fine tune them if needed. For attacks I just start and then draw out my formations manually with click and drag. I've never used the preset formations. When drawing out lines of e.g. spearmen, it's best to first drag the group out from one end of the map to the other to create a very thin line, then immediately drag again in the form that you want. By doing this you'll make the individual units sit closer together.
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