Measured Move Up

  • Usually appears when prices bottom out after a downtrend
  • Forms an uptrend when stock price moves up then, retraces for a brief period before making a second move up to make a higher high.
  • Prices usually retrace 35% to 65% from the start of the first move up before resuming the ascent
  • Retracement period can be a brief downtrend or sideways trend
  • Retracement period can be represented by patterns
  • The lows of the retracement period can act as a future support for the stock
  • Effect: Stock prices could rally up for the second time if prices break out from the retracement period.
Measured Move Up