Measured Move Up

The Measured Move Up is a bullish continuation pattern that unfolds in three distinct phases:

• First Impulse (Leg A): A strong, steep price rally on expanding volume.
• Correction (Leg B): A controlled pullback or sideways consolidation, typically retracing 38–62% of the first impulse. Volume contracts during this phase.
• Second Impulse (Leg C): A renewed rally that often mirrors or exceeds the first impulse in length and slope. Volume expands again on the breakout.

The name “measured move” comes from the tendency of the second impulse to travel approximately the same distance as the first.

The measured move up reflects trend continuation with a pause for digestion:

• Leg A: Strong buying enthusiasm pushes prices higher. Momentum traders, news catalysts, or breakout buyers fuel the surge.
• Leg B: Early longs take profits, and cautious traders wait for confirmation. Sellers press back, but demand remains strong enough to hold higher lows.
• Leg C: Confidence returns as buyers recognize the correction was shallow. Fresh demand enters, often triggering stop losses for shorts and fear-of-missing-out (FOMO) for sidelined traders.

The pattern works because it blends momentum, consolidation, and renewed demand in a predictable rhythm.

Bulkowski’s research on measured move ups shows:

• Continuation odds: ~70% (leg C forms successfully).
• Failure rate: ~17%.
• Average rise after breakout: ~45%.
• Symmetry: Leg C equals ~93% of Leg A’s length on average.
• Duration: The correction (leg B) often lasts 1/3–1/2 as long as the impulses.

These stats make it one of the more reliable continuation formations, especially in strong bullish environments.

Entry:

• Conservative: Buy on breakout from Leg B consolidation.
• Aggressive: Accumulate within the correction near support.

Stop loss: Below the correction low (conservative) or below breakout point (aggressive).

Targets: Minimum = length of Leg A projected upward from breakout point. Secondary = Fibonacci extensions (1.618x Leg A).

Invalidation: If price retraces >62% of Leg A during Leg B, the setup weakens. Breakdown below Leg A’s starting point cancels the pattern.

• Overly shallow corrections: If Leg B is too flat, breakout may lack energy.
• Overly deep corrections: >62% retracement often signals trend exhaustion.
• Volume signature: Healthy pattern = expansion in A and C, contraction in B.
• False Leg Cs: Sometimes the “second impulse” fizzles quickly. Confirmation is critical.
• Context dependency: In parabolic markets (crypto), measured moves can overshoot dramatically; in equities, symmetry is more reliable.

• If Leg A is weak or choppy (no clear impulse).
• If Leg B retraces too deep or drags on excessively.
• If breakout lacks volume.
• If broader market trend is against the pattern.