Trading glossary
What is a measured move?
A measured move projects a target by repeating a pattern's height, or a prior swing's length, from the breakout point.
Most chart patterns come with a measured move. For a head and shoulders, measure from the head to the neckline and project that distance from the break. For a flag, project the flagpole's length.
Measured moves are rough projections, not forecasts. Price often stops short at an intervening level, or overshoots.
How traders use it
- Check what levels sit between the breakout and the projected target.
- Use the measured move as a reference area, not an exact price.
- Compare the projection with the market's typical range so it is realistic.
Example
A head and shoulders has its head at 120 and its neckline at 110, a 10-point height. Price breaks the neckline at 110, so the measured move projects to about 100.
Frequently asked questions
How accurate are measured moves?
They are guides. How often they are reached varies a lot by pattern, market and timeframe.
Is it the same as a Fibonacci extension?
Similar idea, different method. Extensions use fixed ratios of a swing; measured moves use the pattern's own height.
Related terms
Related patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.