As of 08/20/2019
  Indus: 25,962 -173.35 -0.7%  
  Trans: 10,006 -75.35 -0.7%  
  Utils: 834 -1.95 -0.2%  
  Nasdaq: 7,949 -54.25 -0.7%  
  S&P 500: 2,901 -23.14 -0.8%  
YTD
 +11.3%  
 +9.1%  
 +17.0%  
 +19.8%  
 +15.7%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019
As of 08/20/2019
  Indus: 25,962 -173.35 -0.7%  
  Trans: 10,006 -75.35 -0.7%  
  Utils: 834 -1.95 -0.2%  
  Nasdaq: 7,949 -54.25 -0.7%  
  S&P 500: 2,901 -23.14 -0.8%  
YTD
 +11.3%  
 +9.1%  
 +17.0%  
 +19.8%  
 +15.7%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019

Bulkowski's Measured Move Up

 

Updated with new statistics 5/29/2018.

For more information on this pattern, read Encyclopedia of Chart Patterns Second EditionEncyclopedia of Chart Patterns 2nd Edition book., pictured on the right, pages 510 to 521. That chapter gives a complete review of the chart pattern, including tour, identification guidelines, focus on failures, performance statistics, trading tactics, and sample trade. Below is just a sliver of the information contained in the book.

The measured move, as I have implemented it, is an improved version of the traditional pattern. I find them automatically now. Patternz has the same algorithm built in, so you won't have to guess if one occurs. It'll show you.

The idea behind a measured move is that the second leg will equal the first leg in both price and time. That's for the ideal pattern. Reality shows the pattern falls short of expectations, at least my implementation of it. This version of the pattern sees the second leg meet or exceed the price of the first leg 67% of the time.

Measured move up chart pattern
Measured Move Up Chart Pattern Components

 

Measured Move Up: Important Bull Market Results

Overall performance rank for up/down breakouts (1 is best): 30 out of 56/45 out of 53
Average first leg price rise: 13% in 10 days
Average corrective phase retrace: 84% in 9 days
Average second leg price rise: 13% in 13 days.
Percentage meeting price target: 67%
Percentage meeting time target: 6% (exact matches only)

The above numbers are based on over 3,800 perfect trades. See the glossary for definitions.

Measured Move Up: Identification Guidelines

The algorithm finds three consecutive turns, starting with a minor low (bottom of leg 1) then a minor high (start of the corrective phase), and then a retrace of at least 70%, ending in a minor low (the end of the corrective phase). It's assumed that the next minor high will end the pattern at the top of the second leg.

CharacteristicDiscussion
TrendMeasured moves are reversal patterns so look for a downward price trend leading to the start of the measured move (for the best performance).
First legAny minor low which leads to a minor high.
Corrective phaseThe algorithm looks for retraces of at least 70%. Those lead to the best measure-rule performance.
Second legPrice ends the pattern at a minor high.

Top of page More

Measured Move Up: Trading Tips

Trading TacticExplanation Measured move up chart pattern measure rule
The Measure Rule
Measure ruleCompute the length of the first leg from the lowest valley (point A in the Measure Rule figure to the right) to the highest peak at the start of the corrective phase (point B) then multiply it by the above "percentage meeting price target." Add the result to the lowest valley in the corrective phase (point C) to get a price target.
BuyOnce the second leg begins (point C in the Measure Rule figure to the right), buy. If price drops below the corrective phase low (C), close out the trade.
TargetIf price nears the target or overhead resistance abounds near the target, close out the position.
TrendlineIf the projected price target of a measured move intersects a down-sloping trendline setup by prior price action, then expect price to reverse there.
RetraceThe larger the corrective phase retrace (the move from B to C in the Measure Rule figure to the upper right), the better the chance of meeting the price target.

Top of page More

Measured Move Up: Example

Measured move chart pattern example

The above figure highlights two examples of a measured move up chart pattern. The first leg begins at point A and rises to the top of the corrective phase at B. Then price corrects to C before finishing the measured move up chart pattern at D. You can also nest measured moves. The sequence CDAB forms another measured move up.

Please note that this example was found manually, not using my new algorithm.

-- Thomas Bulkowski

Top of page More

Other Measured Move Up Examples

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:      New                  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

Copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.

Home Advertise Contact Donate Links Privacy/Disclaimer

Sped up my computer; ran it on 220 volts. Works greO$%?Smiley