What is a Measured Move Up Pattern?
A Measured Move Up is a bullish continuation pattern where price runs up in an impulse leg (A→B), pulls back or consolidates (B→C), then runs again (C→D) — with the second leg traveling the same distance as the first.
What Does a Measured Move Up Pattern Indicate?
The uptrend continues after a pause. The BC pullback represents profit-taking and re-accumulation, while the CD leg confirms buyers absorbed enough supply to push price through the prior swing high.
Smart money continues buying, letting weak hands sell first before stepping back in.
Is the Measured Move Up Pattern Bullish or Bearish?
Bullish.
The pattern only forms inside an existing uptrend and resolves with price extending higher after the correction completes. If price breaks below C and stays there, the continuation has failed.
How to Identify a Measured Move Up Pattern?
Look for three clean swings that respect the uptrend structure and produce a breakout above the prior high.
AB impulse: A clean upswing from swing low (A) to swing high (B).
BC correction: A pullback or sideways base that holds above A and bottoms at swing low C.
Trigger level: Price must break above B to start CD.
CD advance: The post-breakout swing extends from C and trends higher.
🚀 Quick Tip: If the BC correction breaks below A, the pattern is dead. Wait for the next setup.
How to Draw a Measured Move Up Pattern?
Mark three points (A, B, C) on the chart, then project the AB distance from C to find where D should land.
Mark A at the swing low that starts the impulse.
Mark B at the swing high that ends the impulse.
Mark C at the swing low that ends the correction.
Measure the vertical price distance (B − A).
Project that same distance from C to plot your D target.
How to Trade a Measured Move Up Pattern?
Enter long when price closes above B on your trading timeframe.
Entry trigger: A close above B, or a breakout followed by a retest that holds above B.
Confirmation: Expanding range and strong closes on the breakout bar — bonus points for volume above the 20-period average (if volume is reliable in your market).
Invalidation: The setup is dead if price breaks below C and holds there.
⚠️ Warning: Jumping in before B breaks is a common mistake. Entering early means trading a pattern that hasn't confirmed.
What is the Profit Target for a Measured Move Up Pattern?
The profit target is the measured move projection: Target = C + (B − A).
Whatever distance AB traveled, project that same distance up from C.
Example: A = $50, B = $70, so AB = $20. If C = $60, then target D = $60 + $20 = $80.
🔥 Pro Tip: Scale out partial profits at the measured target, then let a runner go with a trailing stop. Some measured moves stop at the target. Others extend well past it.
Where to Put a Stop Loss on a Measured Move Up Pattern?
The stop loss goes below point C, the swing low the pattern is built on. If price loses C, the continuation premise is gone.
Placement: Below the C swing low, with a buffer sized to the instrument's volatility — under the low of the C pivot candle, or below the next clear support shelf under C.
Mechanism: A decisive break below C means the correction isn't finished, and the measured continuation premise no longer holds.
💡 Note: Place your stop where the pattern is mechanically invalidated.
What Happens After a Measured Move Up Pattern?
Three things can happen, and you need a plan for all of them.
Price either trends cleanly toward the measured objective, stalls at intermediate resistance, or fails by snapping back below B and dropping into the BC range.
Common behavior: A breakout above B, then a throwback retest of B as support before the continuation kicks in.
Follow-through: Strong trends print higher lows after the breakout and keep closing above prior resistance.
Failure mode: A breakout that rejects fast and loses B leads to a deeper pullback toward C.
📌 Key Takeaway: Plan your exit before entry. Know where you'll add, where you'll trim, and where you'll bail. The measured move provides all three levels: B, C, and the projected D.