What is Measured move?
O'lchov maqsadi
In short
A way to project a target from a pattern: the pattern's height (or the flagpole's length) is added from the breakout point in the direction of the move. E.g. head $120, neckline $104 → target $104 − $16 = $88. A guide, not a guarantee.
Also known as: measured target, o'lchangan harakat
A measured move is a simple way to project a price target from a chart pattern. The idea: the move out of a pattern tends to travel roughly as far as the pattern was "wide".
Formula
- Reversal and consolidation patterns (head and shoulders, double top, triangle): Target = Breakout point ± Pattern height.
- Flags and pennants (flag): Target = Breakout point ± Pole length.
Height is measured at the pattern's widest point: in a head and shoulders from the head to the neckline, in a double top from the peak to the neckline.
Why it's useful
A target lets you evaluate the trade before entering: where the stop is, where the target is, and therefore the R:R. If the distance to the target is smaller than the risk, the trade may not be worth taking.
Limitations
It is a guide, not a guarantee. Price often stops short of the target and sometimes overshoots it by a lot. Strong resistance along the way matters more than the target. That's why many traders close part of the position halfway to the target or at a nearby level and manage the rest with a trailing stop.
Head $120, neckline $104 — height $16, target $88. Volume shrank on each new peak and spiked on the break. Price came back to test $104 from below (retest) and failed — the last comfortable exit for anyone still holding.
Pole: $50 to $60 in 5 candles on heavy volume. Flag: a tight channel sloping down while volume dries up, low at $56. The upper line broke near $58 on volume; add the $10 pole and the target is $68.
Example
Illustrative (bull flag): a stock rallied from $40 to $50 in 6 days — a $10 pole. It then drifted down in a small channel to $47 over a week (the flag). Price broke out of the top of the channel at $48.50.
- Target: $48.50 + $10.00 = $58.50
- Stop: just below the flag low — $46.50. Risk: $48.50 − $46.50 = $2.00
- R:R: $10.00 ÷ $2.00 = 1:5
A cautious plan: close half at $53.50 (halfway) and hold the rest with a trailing stop. You can check the numbers with the R:R calculator.
Mistakes and tips
Don't make the target your only exit — mark nearby resistance levels too.
Measure the height from the right place: in a head and shoulders, from the head to the neckline, not edge to edge.
Also estimate how long the move may take: the longer the pattern took to form, the longer the move may last.
Frequently asked questions
- How accurate is a measured move?
- It is an approximate guide. Price often reaches the vicinity of the target, but stopping short or overshooting is also common.
- How do you calculate a flag pattern target?
- Add the pole length — from the start of the sharp move to the start of the flag — to the breakout point (subtract it for a bear flag).
Learn it in the Academy
This term is covered with hands-on examples and a quiz in these lessons of the interactive course.
- Chart patterns: head and shoulders and trianglesHead and shoulders and the three triangles: anatomy, psychology, neckline, measured-move targets, retests, volume and failed patterns.Open lesson · 12 min
- Double tops and bottomsA level tested twice or three times: confirmation via the neckline, measured-move targets, Adam and Eve, volume and failed patterns.Open lesson · 11 min
- Flags and pennantsThe short pause after a strong move: pole, flag, pennant, measured move, breakout and pullback entries, stops, and telling a flag from a reversal.Open lesson · 11 min
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