Definition
A measured move is a method for estimating how far a price move might travel. It works by measuring the size of an earlier, completed swing and projecting that same distance from a new reference point — typically a breakout level or the end of a consolidation. The result is a target price the move might plausibly reach.
The technique rests on a simple assumption: that moves of similar character tend to be of similar size. A measured move does not predict that price must reach the target. It supplies a reasonable, rule-based estimate that an analyst can use for planning rather than guesswork.
Why it matters
How it works
In its purest form, a measured move pattern is itself a three-part shape: an initial trend leg, a corrective pause, and a second trend leg expected to roughly match the first. The analyst measures the first leg and projects its length from the end of the correction to set the target for the second leg.
The same logic is built into named chart patterns. A double top, a head and shoulders, a triangle, and a flag each define a height, and the measured-move rule projects that height from the breakout to produce the pattern's target. Because the projection is mechanical, analysts often combine it with support and resistance levels to judge how realistic the target is.