Technical Analysis: Measured Move (MM)

The pattern consists of three legs or moves, where the first two legs are roughly equal in size and direction, and the third leg is expected to move in the same direction as the first two legs by a distance that is approximately equal to the combined size of the first two legs.

In other words, the measured move pattern suggests that the price will move in a similar direction and by a similar distance as a previous move that is of similar size.

Traders and analysts often use the measured move pattern to identify potential price targets for an asset, and to help determine when to enter or exit a trade.