The Measured Move

The measured move is a simple observation that some market moves are made in two equal parts, with a retracement of 33% or 50% in the middle. It can give you a price target after an initial retracement or correction. All you do is transpose the initial move on to the end of the retracement to get the next target, like so –

You would use it by simply watching the retracement turn around, and project the distance for the next move to give the next target.

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