Measured Move Projections
Overview
Measured move projections use the length of a prior price swing to forecast the target of the next swing in the same direction. The technique assumes market symmetry — that the second leg of a move will approximate the distance of the first leg. Measured moves apply to impulse waves, corrective patterns, and chart pattern breakouts, providing objective price targets that remove subjectivity from exit planning.
Key Concepts
An AB=CD pattern projects the length of leg AB from point C to find target D. Chart pattern targets project the pattern's height from the breakout point. Flag and pennant targets use the flagpole length projected from the consolidation breakout. Fibonacci extensions such as one hundred percent and one hundred sixty-one point eight percent provide refined measured move levels. Multiple measured move projections converging at a single price create powerful target clusters. The concept applies to both price targets and time projections using swing duration analysis.
Entry Signals
Enter continuation trades on pullbacks within a measured move progression when the first leg has been confirmed. Use measured move targets from a completed pattern as the basis for entering breakout trades. Enter when price pulls back to a prior measured move completion level that becomes support or resistance. Confirm symmetry by measuring the prior leg and projecting forward with Fibonacci tools.
Exit Signals
Take profit at the one hundred percent measured move projection — the most common target level. Extend targets to one hundred sixty-one point eight percent if momentum and volume support continuation. Exit if price stalls significantly before reaching the measured move target, indicating the symmetry assumption is failing. Use partial exits at the one hundred percent level with a trail toward extensions.
Best Timeframes
1H, 4H, Daily
Pro Tips
Measured moves work best in trending markets where price maintains structural symmetry. The AB=CD pattern is the simplest and most reliable measured move framework. When multiple measured move projections from different patterns or timeframes align at a single price level, that confluence zone becomes a very high-probability target or reversal area. Always combine measured moves with other technical tools rather than relying on projections alone.
More Topics in This Category
Rounding Bottom
The rounding bottom (also known as a saucer pattern) is a long-term bullish reversal formation characterised by a gradual, U-shaped transition from a downtrend to an uptrend. The pattern reflects a slow shift in sentiment from bearish to neutral to bullish, typically forming over weeks or months. A breakout above the pattern's resistance (the left rim level) confirms the reversal.
Inverse Cup & Handle
The inverse cup and handle is a bearish continuation or reversal pattern that mirrors the bullish cup and handle formation. It consists of a rounded top (the inverted cup) followed by a brief upward consolidation (the handle). The pattern indicates that buying attempts fail to sustain higher prices, and the handle's upward drift represents a final weak rally before sellers take control, breaking price below the handle's support.
Rising & Falling Wedges
Rising and falling wedges are converging trendline patterns where both support and resistance slope in the same direction. A rising wedge (both lines slope upward, converging) is typically bearish, while a falling wedge (both lines slope downward, converging) is typically bullish. Wedges differ from triangles because both trendlines slope in the same direction rather than converging symmetrically.
Ascending & Descending Triangles
Ascending triangles form when price creates a horizontal resistance line at the top and a rising support trendline at the bottom, indicating buyers are becoming more aggressive. Descending triangles feature a horizontal support floor with a declining resistance trendline, suggesting sellers are gaining control. Both patterns are typically continuation patterns that resolve in the direction of the prevailing trend with a measured move target equal to the triangle's height.