Measured Move Up is a bullish continuation pattern that shows a strong upward trend divided into three phases: rise, correction, and another equal rise.
Measured Move Up Pattern: What Is It and How Does It Work?
A Measured Move Up is a bullish technical analysis pattern that shows up in strong uptrends: a clean push higher, a pullback or sideways pause, then another push that often travels a similar distance to the first leg. Most traders map it as A-B=C-D, where the CD leg is expected to “measure” close to AB.
You use it to turn the move into numbers: measure the first impulse, wait for the reset, then project targets for the continuation instead of guessing.
Measured Move Up Trading Strategy: Entry Triggers and Rules
Measured moves pay when you stop trying to predict and start waiting for confirmation. The cleaner entry is the Wave C breakout—price clears the B high and volume shows up. That breakout trigger is where most traders want to commit, because it’s the market proving continuation, not just “maybe.”
You’ve got flexibility depending on your style. Conservative traders buy the break above B with volume and follow-through. More aggressive traders will scale in during BC near 33%, 50%, or 62% retracement support, but the trade-off is obvious: tighter stop, less confirmation, and you need to be quicker admitting you’re wrong.
Entries work best when Wave C starts with real participation—volume expansion, a clean breakout candle, or a channel break that actually holds. If it pops and immediately dumps back into the range, treat it as a trap until proven otherwise.
For exits, the base target is C + AB. From there, you can take partials into nearby resistance, trail a stop under higher lows, or tighten up once the move starts getting climactic. Strong trends can justify giving it more room; weaker tape usually means you take the first clean target and don’t overstay.
Measured Move Execution Plan: Rules From Setup to Exit
A clean setup looks like this: you’ve got an uptrend, AB rips higher with volume, BC pulls back and bases without breaking structure, then price breaks above B and holds. If volume expands on that break, you’ve got your trigger.
Risk goes under C or the nearest swing support, and the target is the AB distance projected from C.
Measured Move Trading Rules (Full Checklist)
Confirm the uptrend with structure (higher highs/higher lows)
Mark Wave A (AB) and measure the distance
Let Wave B (BC) retrace and consolidate (often 30–61.8%)
Set the trigger above the Wave A high (point B)
Enter on a breakout that holds, ideally with volume expansion
Place the stop below point C or the swing level that invalidates the setup
Project the target: C + AB (and note 161.8% as a stretch target in strong trends)
Take profits into the projection zone and nearby resistance
Use partials or a trailing stop if trend strength supports it
Exit if price loses your invalidation level—no “hoping”
If you want to get better at these, track them. Screenshot the setup, log where you entered, where your stop was, whether volume confirmed, and how close price got to the measured target.
Tools like RizeTrade can help you catalog the reps, but the real improvement comes from doing the work and reviewing the outcomes. Backtesting measured moves across different market regimes is what builds confidence—and shows you when to press and when to pass.
Risk Management for Measured Moves: Stops, Sizing, and Exits
This pattern is only as good as your risk control. You’ll still take losers—especially in choppy markets—so the job is keeping the damage small and letting the clean continuations pay you.
Stops usually go below point C (the BC low) or under the most recent swing support that keeps the structure intact. In fast markets, ATR-based stops help you avoid getting wicked out by random noise.
A common buffer is placing the stop 1–2% below the breakout level or below C (depending on the instrument), but the real rule is simple: if price breaks the level that makes the setup valid, you’re out.
Measured Move Risk Management Checklist
Risk-Reward Ratios: Aim for at least 1:1.5 to 2:1 using the measured target, otherwise you’re forcing trades that don’t pay.
Position Sizing: Size off your stop distance. Wider stop = smaller size. No exceptions.
Capital Allocation: Keep risk per trade around 1–2% of the account so a rough stretch doesn’t knock you out of the game.
Trailing Stops: Trail with ATR or structure, or move to breakeven after 1R if the market is sloppy and likes to snap back.
When traders blow up measured moves, it’s rarely the pattern—it’s over-sizing, moving stops, or revenge trading after a failed breakout. Stick to the process and the math does its job.
Measured Move Price Target Formula: How to Use the Measure Rule
The measure rule is the whole point of the pattern: you take the distance of AB and project it from C. It’s simple, repeatable, and works across stocks, forex pairs, and indices because it’s based on swing structure, not a one-off indicator reading.
How to Calculate a Measured Move Target (Step by Step)
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Measure the AB Leg: Take the swing low at A and the swing high at B. The difference is your AB distance. Example: $50 to $70 = $20.
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Identify BC Retracement End: Mark where the pullback stabilizes and starts to base (point C). Example: price pulls back and holds around $60.
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Project the CD Target: Add AB to C. Example: $60 + $20 = $80 as the primary measured move target.
How to Manage Trades Using Swing Measurements
Targets are zones, not magic numbers. Price will front-run, tag it, overshoot, or stall a bit early depending on volatility and where liquidity sits.
A practical way to handle it is treating 80–100% of the projection as the main profit window, then using structure or ATR to decide whether you hold for the full measure or take the money.
Measured Move Targets: How to Improve Entries With Simple Math
The edge here is the math. With measured move calculations, you can bracket the pullback zone and pre-plan targets before price even breaks out. The BC leg often retraces into the 50–61.8% area of AB, which gives patient traders a defined “wait here” zone for confirmation.
If momentum comes back, CD commonly targets 100% of AB, and in stronger trends you’ll see 161.8% extensions show up as stretch targets. When you spot the three phases and apply the measurement, the setup stops being “it looks bullish” and becomes “here’s the entry trigger, here’s the invalidation, here’s the target.” That’s why measured moves are a staple continuation play for uptrend traders.
How to Identify a Measured Move Up: Rules and Confirmation Tools
Most losses with continuation patterns come from treating every pop as a breakout. Markets love to fake traders out right at obvious levels, so you want a checklist and you want tools that help confirm what you’re seeing. Solid identification rules plus a couple confirmations usually beats “gut feel.”
Pattern Element | Identification Guidelines | Confirmation Signals |
|---|---|---|
AB Leg (Impulse Move) | Sharp push higher with clean structure; momentum stays firm; volume generally rises through the advance | Volume expansion early in the move; steady sequence of higher highs; minimal stalling on the way up |
BC Leg (Retracement) | Pullback typically into 50–61.8% (can be deeper in flat ranges); volume cools off; price consolidates rather than collapses | Support holds around key Fib levels; volume stays lighter than AB; no structural break of the uptrend |
CD Leg (Continuation) | Breaks above the B high with intent; momentum returns; volume expands on the breakout | Breakout holds above prior resistance; volume prints above average; follow-through candles confirm demand |
Volume is the simplest “truth meter” for this pattern. Fib retracements help you define where BC is likely to end, especially that 50–61.8% pocket.
If you use scanners or pattern tools, treat them as a first pass—price/volume confirmation is what keeps you out of low-quality lookalikes. The common screw-ups are predictable: buying the first poke above resistance with no volume, entering mid-pullback because it “feels like support,” or ignoring the fact that structure already broke.
If you wait for the market to prove Wave C is real—breakout plus participation—you cut down a lot of the false starts.
Measured Move Up Pattern Parts: AB, BC, and CD Legs Explained
The pattern is basically impulse → reset → impulse, inside an existing uptrend. The first leg is aggressive buying, the middle is digestion (profit-taking, reloading, chopping), and the last leg is the trend resuming.
Volume helps a lot here: you want it expanding on the pushes and cooling off during the pause, otherwise you’re often just trading noise.
AB, BC, CD: The 3-Wave Measured Move Structure
Wave A (AB Leg): The first drive higher. It’s usually obvious on the chart—strong candles, clean structure, and volume picking up as price lifts. That swing high at B becomes the line in the sand later, because a real measured move continuation should be able to take it out.
Wave B (BC Leg): The pullback / consolidation. Volume typically fades while price works off the move. Most of the time you’ll see BC retrace around 50–61.8% of AB, but deeper resets happen (78.6% and even 90%) when the market goes into a flatter, grindy range.
This is where traders mark support, track Fibonacci retracement levels, and wait to see if structure holds.
Wave C (CD Leg): The continuation leg. This is where you want to see price reclaim momentum and volume come back in. Targets are usually set two ways: the basic measure rule (C + AB) or an extension target (C + 161.8% of AB). In the cleanest versions, CD tracks AB closely enough that you can manage the trade around predictable liquidity and profit-taking zones.
How Do You Spot a Measured Move Up on a Chart?
Visually, you’re looking for higher highs and higher lows across the sequence, with a clear “push, pause, push” rhythm. The best ones look orderly: an aggressive run, a quieter base, then a breakout that doesn’t instantly fade.
When it’s clean, planning entries, stops, and reward-to-risk is pretty straightforward.
Measured Move Variations: Timeframes, Confluence, and Similar Patterns
Measured moves show up everywhere—large-cap stocks, EUR/USD, Nasdaq futures, major indices—because it’s just trend behavior. Liquidity and volatility change how clean the legs look, but the mechanics stay the same: push, reset, continuation.
Timeframe matters. Intraday measured moves can work, but they’re more vulnerable to headline spikes and stop runs. Daily/weekly patterns usually behave cleaner and give better follow-through because the participants are larger and the noise-to-signal ratio is lower.
Confluence helps a lot. If your measured move lines up with prior resistance, Fib extensions, and strong volume confirmation, the trade is easier to hold. Momentum tools can help, but price/volume around B and C is still the main story.
Compared to flags and pennants, the big advantage is target precision. Flags/pennants tell you continuation is likely; measured moves tell you where the move is likely to run into profit-taking, because the projection is defined. That makes it easier to plan exits and manage the position like a pro.
How Do You Turn Measured Move Rules Into Consistent Execution Over Time?
The measured move up is already a structured framework—defined legs (AB/BC/CD), a clear trigger above B, an invalidation below C, and a projected target based on the AB distance. The gap for most traders is consistency: taking the same quality setups, managing risk the same way, and then reviewing whether volume confirmation, retracement depth, and market regime affected outcomes.
A trading journal makes that feedback loop concrete. When you log screenshots, entry type (breakout vs. pullback), stop placement method (structure vs. ATR), and how price behaved around the measured target zone, you can compare like-for-like trades and spot which variations actually perform. Over time, simple metrics—R-multiples, win rate by retracement level, and frequency of failed breakouts—help refine rules without guessing.
Using a trade journal and analytics dashboard such as Rizetrade trading journal software for tracking PnL, setups, and performance metrics can support that process by organizing trades into repeatable categories, making it easier to monitor decisions and improve execution based on evidence.