Trends/Continuation patterns

Measured move up

A rise, a pause or dip, and a second rise of about the same size as the first.

Continuation patternsBest on 3M, 6M, 1YAlso called AB=CD up, equal legs up
Measured move up diagramIllustration of the measured move up shape. It is a sketch, not real price data.Leg 1Leg 2
Illustration of the measured move up shape. It is a sketch, not real price data.

What it shows

A measured move has three parts: a first leg up, a correction, and a second leg up. The two legs are about equal in size, in points or in percent.

Our code only measures. It finds completed moves where the legs match. It does not say where a new leg will end.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. Find a first leg up: a swing low to a swing high.
  2. Find a correction that retraces 30% to 80% of the first leg.
  3. Find a second leg from the correction low to a later swing high.
  4. Mark it as measured if the second leg is within 20% of the size of the first.

Starting values: Retracement 30% to 80%; Leg match within 20%. These are proposed and will be tuned on real price data before launch.

How to read it

  • The gold brackets show the size of each leg.
  • The two brackets are the same height.
  • The ratio of the two legs is shown in the status.

Status labels you may see

LabelWhat it means
Leg 2 in progressSecond leg is under 80% of the first.
Equal legsSecond leg is within 20% of the first.
Longer second legMore than 120% of the first leg.

What cancels it

A close below the start of the first leg cancels it.

What traders check next

  • The correction depth.
  • Time taken by each leg.
  • Volume on each leg.

Limits

  • Equal legs are common by chance.
  • Measuring a pattern that is still forming predicts nothing.
  • The match tolerance is a choice.

Try it in forecastviz

  • Open any ticker and choose Continuation patterns → Measured move up in the left menu.
  • Switch between 3M, 6M, 1Y to see how the picture changes.
  • Compare with Measured move down and ABCD pattern on the same chart.
Open on a ticker

Questions

Does the second leg have to be equal?

No. This tool only reports when it was.

Is this the same as AB=CD?

The idea is the same. The AB=CD harmonic pattern adds Fibonacci rules for the correction.

Related trends

Measured move downABCD patternThree drivesFlag after a rise

Further reading

  • Edwards and Magee, Technical Analysis of Stock Trends
  • Bulkowski, Encyclopedia of Chart Patterns
  • O'Neil, How to Make Money in Stocks
← Inverse cup and handleMeasured move down →

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.