As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
|
 44,200 or 41,750 by 01/01/2025 16,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 |
As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
| |
|
44,200 or 41,750 by 01/01/202516,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 | ||
Updated with new statistics 8/27/2020.
For more information on this pattern, read
Encyclopedia of Chart Patterns Second Edition
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.
Measured Move Up Chart Pattern Components
|
The above numbers are based on over 1,000 perfect trades. See the glossary for definitions.
I use two methods to find measured moves. The first is manually. That's what the statistics in this chapter show. The other method is automatically, which the following discussion relates to.
The computer 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. Patternz will find measured moves automatically.
| Characteristic | Discussion |
| Trend | Measured moves are reversal patterns so look for a downward price trend leading to the start of the measured move (for the best performance). |
| First leg | Any minor low which leads to a minor high. |
| Corrective phase | The computer algorithm looks for retraces of at least 70%. Those lead to the best measure-rule performance. |
| Second leg | Price ends the pattern at a minor high. |
| Trading Tactic | Explanation | 
The Measure Rule
|
| Measure rule | Compute 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. | |
| Buy | Once 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. | |
| Target | If price nears the target or overhead resistance abounds near the target, close out the position. | |
| Trendline | If the projected price target of a measured move intersects a down-sloping trendline setup by prior price action, then expect price to reverse there. | |
| Retrace | The 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. |
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
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