DTT Buzz

The measured move or swing measurement, is the name given to the phenomenon where a major market advance or decline is divided into two equal, parallel moves. In order for this pattern to work in stock trading, the moves should be orderly and well defined. The measured move is a variation of other consolidation patterns like the pennant and flag or the wedge and triangle. It is a known fact that the market tends to retrace one-third to one-half of the prior trend before resuming the trend.

Look at the above graph of a measured move. When a trader sees such a well defined situation, with a rally from point A to point B, followed by a retracement countertrend swing of one-third to one-half (points B to C), it's expected the next move, from points C to D, in this uptrend will be for the leg to duplicate the first leg (points A to B). The height of the AB leg is measured upward from the bottom of the correction at point C.

Don't miss the signals that determine where your trade is going. Let our experts provide the technical analysis to keep you in the green. Join us today in our Live Trading Room.

Sign up now for our 5 Trading Day Trial for only $5.

Happy Trading,






Andy Swan
Co-Founder, DaytradeTeam

p.s. Don't forget to sign up for the FREE Buzzzzzzz Daily Newsletter to get all of these articles DELIVERED to your email daily!