What Is the Basic Measured Move Formula?
Measure vertical distance of first leg (pole), add to breakout from consolidation base. Bull flag: pole up, flag consolidation, target = breakout + pole height. Bear flag symmetric downward. Rectangle range: height of range projected from break. The logic is symmetry—markets often replay similar volatility units after pause.
Measured moves are estimates, not laws; news and regime change override geometry.
Which Patterns Use Measured Moves Most?
Flags, pennants, triangles, head and shoulders (neckline to head height projected from break), rectangles, and double bottoms. Classic technical analysis textbooks formalize many; discretionary traders use same math informally on any clear two-leg structure.
Pattern quality matters—clean pole and tight flag beat sloppy overlapping bars where measured move math projects a target the market never intended to reach.
How Do You Manage Trades With Measured Targets?
Partial profit at 100% measured target; trail remainder under structure. If volume climaxes at target, full exit may beat hope for extension. When target aligns with Fib extension or horizontal S/R, scale more aggressively. If market weakens mid-move, reduce target expectations.
Stops stay below flag low or pattern invalidation—not moved because target is near and hope replaces the original risk plan you wrote before entry.
Partial profit at 100% measured target; trail remainder under structure when the pole was large and full symmetry feels ambitious for current volatility.
When Do Measured Moves Fail?
Weak breakouts, low volume, counter-market moves, and earnings gaps blow through targets or reverse early. Overshot targets happen in momentum regimes—trailing beats fixed target only when trail rules were defined before entry, not improvised at the line. Failed measured move (stall mid-leg) signals exit or hedge rather than hope for late acceleration.
Track hit rate of measured targets on your universe—adjust partial exit rules to data rather than assuming every flag reaches 100% of pole projection.
How Do Partial Measured Moves Work?
Some traders take first partial at 50% of projected leg, remainder at 100%—useful when pattern pole is large and full target feels ambitious. Adjust to average true range: on low-volatility days, shrink expectations; on expansion days, allow overshoot with trail.
How Do Measured Moves Relate to Other Tools?
Fib extensions sometimes coincide with 100% measured move. Channels project parallel moves. Volume confirms leg completion. Supply/demand zones at target may cap move. Measured move gives numeric exit discipline to pattern trading.
Name target on chart before entry—reduces greed-driven hold through reversal when measured move completes and volume diverges at the projected level.