The Measured Move is a three-part formation that begins as a reversal pattern and resumes as a continuation pattern. The pattern is usually long-term and forms over several months. The Bullish Measured Move can be made up of a number of patterns. There could be a double bottom to start the reversal advance, a price channel during the reversal advance, an ascending triangle to mark the consolidation and another price channel to mark the continuation advance.
During multi-year bull markets or bear markets , a series of Bullish Measured Moves can form. While the projections for the continuation advance can be helpful for targets, they should only be used as rough guidelines. Securities can overshoot their targets, but also fall short — technical assessments should be ongoing.
Log In Sign Up Help. Measured Move - Bullish Continuation. Measured Move - Bullish Continuation The Measured Move is a three-part formation that begins as a reversal pattern and resumes as a continuation pattern. For the first advance to qualify as a reversal, there must be evidence of a prior downtrend to reverse.
Because the Bullish Measured Move can occur as part of a larger advance, the length and severity of the prior decline may vary from a few weeks to many months. The first advance usually begins near the established lows of the previous decline and extends for a few weeks or many months. Sometimes a reversal pattern can mark the initial trend change.
Other times the new uptrend is established by new reaction highs or a break above resistance. Ideally, the advance is fairly orderly and lengthy with a series of rising peaks and troughs that may form a price channel. Less erratic advances are satisfactory, but run the risk of forming a different pattern. After an extended advance, some sort of consolidation or correction can be expected. As a consolidation, there could be a continuation pattern such as a rectangle or ascending triangle.
Generally speaking, the bigger the advance, the bigger the correction. Continuation Advance - Length: Some technicians like to measure by points, others in percentage terms.
For those who prefer percentages: The decision of which method to use will depend on the individual security and your analysis style. Continuation Advance - Entry: However, if there is no readily identifiable pattern, then some other continuation breakout signal must be sought.
In this case, much will depend on your trading style, objectives, risk tolerance and time horizon. Another method might be to wait for a break above the reaction high set by the first advance as confirmation of continuation. This method would make for a late entry, but the pattern would be confirmed. After a large downward sloping trading range throughout most of and , Intel broke above resistance in early November blue arrows and started the first leg of a Measured Bull Move.
The breakout occurred with a strong move above resistance at 22 with 2 weeks of strong volume green arrows. The advance began from After an extended advance, the stock declined within a set range that resembled a large descending flag. The estimated length of the advance was The actual high was Volume increased in early November at the beginning of the reversal advance.
There was a decrease from March to May And, volume increased at the beginning of the continuation advance green arrows.More...