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The Measured Move Up is a bullish continuation pattern consisting of three phases: an initial advance (first leg), a corrective pullback, and a second advance (second leg) that approximately equals the first in length.
Also known as an ABC move, this is one of the most fundamental concepts in technical analysis. Markets tend to move in measured, symmetrical waves — the first leg provides a template for projecting the second.
This pattern works because markets are fractal. The same forces that drove the first advance often replicate in the second leg once the correction completes.
The first leg establishes momentum. A strong advance attracts attention and creates demand. Traders who missed the move want an entry.
The correction shakes out weak holders and creates the entry those sidelined traders were waiting for. Volume typically declines during the pullback, showing selling pressure is exhausted.
The second leg begins as new buyers step in at the corrected price. The measured symmetry occurs because the same fundamental drivers and participant psychology that fueled the first leg often persist through the correction.
Enter at the correction low when signs of reversal appear (support hold, bullish candle, volume shift). Project the first leg's length from the correction low for your target.
Below the correction low. If price breaks this level, the measured move thesis is invalid.
Measure the first leg's length (low to high) and add it to the correction low. This is your measured move target.
Depends on where you enter the correction. Entering at the 50% retracement typically gives 1:2 or better.
Measured moves are everywhere — they're the building blocks of trends. Understanding them helps you set realistic profit targets for any trade.
Every flag, pennant, and triangle trade is essentially a measured move. The pole is leg one, the pattern is the correction, and the breakout starts leg two.
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