Measured move

What it is

A measured move is two legs in the same direction separated by a pullback, where the second leg is roughly the same length as the first. It's one of the simplest ways to set a target, and the idea behind flag targets and the harmonic AB=CD pattern.

How to spot it

• A clear first leg, then a pullback that holds above its start.
• Measure leg one and project it from the end of the pullback.

How to use it

• Use the projected level as a profit target.
• If price stalls well short of it, the second leg may be weaker than the first.

Common mistakes

• Treating the target as certain; second legs are often shorter or longer.

Related