What it is
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 psychology
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.
Identification
- 01Clear first leg — A defined impulse advance
- 02Corrective pullback — Retraces portion of leg one
- 03Second leg emerges — Advance resumes from correction low
- 04Approximate symmetry — Second leg approaches first leg's length
- 01Pullback holds 38.2–61.8% Fibonacci — Healthy retracement
- 02Volume declines in correction — No distribution
- 03Second leg volume matches first — Equal conviction
- 04Clean, defined swing points — Easy to measure
- 01Correction exceeds 100% of first leg — That's a reversal
- 02No clear impulse in first leg — Choppy advance doesn't qualify
- 03Extended consolidation between legs — Momentum lost
- 04Fundamentals changed — Different drivers, different move
Execution framework
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.
Context matters
Measured moves are everywhere — they're the building blocks of trends. Understanding them helps you set realistic profit targets for any trade.
- 01Strong first leg with clear impulse
- 02Shallow correction (38–50%)
- 03Trend aligned with higher timeframe
- 04Volume confirms both legs
- 01Deep correction (beyond 61.8%)
- 02Extended time between legs
- 03Counter-trend setup
- 04Diverging volume on second leg
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.
Compare the full pattern set
Use the library to compare similar structures before deciding what the chart is actually building.