Measured Move Targets: Setting Profit Targets for Chart Patterns

Measured Move Target Chart Patterns: Know Where to Take Profits Before You Enter

Entering a trade without a profit target is like driving without a destination. Measured move targets give chart pattern traders an objective, mathematically derived price level where the pattern's energy is expected to play out.

Every major chart pattern has a standard measured move calculation. Learn them once, apply them forever.

The Core Concept

A measured move target assumes that the energy built during a pattern's formation will produce a move of equal magnitude upon breakout. The "energy" is measured by the pattern's height, projected from the breakout point.

Calculations by Pattern

Double Bottom / Double Top

Measure the distance from the neckline to the bottoms (or tops). Project from the neckline. Example: lows at $50, neckline at $58. Target = $66. Hit rate: ~65-70%.

Head and Shoulders

Measure from the head to the neckline. Project from the breakout. Example: head at $120, neckline at $105. Target = $90. If the neckline slopes, measure from the head vertically to the neckline.

Triangles

Measure the widest part of the triangle. Project from the breakout. Example: flat resistance at $80, first low at $68. Target = $92.

Bull Flag / Bear Flag

Measure the pole (the sharp move before the flag). Project from the flag breakout. Example: pole from $40 to $55, flag breaks at $53. Target = $68.

Cup and Handle

Measure the cup depth (rim to bottom). Project from the breakout. Example: rim at $100, bottom at $82. Target = $118. These frequently exceed their measured move.

Rectangle / Channel

Measure the height. Project from the breakout. Example: support $45, resistance $52. Target = $59.

Minimum Target vs. Extended Target

The measured move is a minimum target. In trending markets, prices frequently exceed it.

Expect an extended move when: The breakout follows the broader trend, volume is 2x+ average, the pattern forms after low volatility, or the sector trends in the same direction.

Expect the measured move as the ceiling when: The breakout opposes the broader trend, volume is average, or price approaches major resistance near the target.

Profit-Taking Strategies

Strategy 1: Full exit at measured move. Simple and effective.

Strategy 2: Partial profits + trailing stop. Sell 50% at target, trail a 2x ATR stop on the rest. This is what most professional pattern traders use.

Strategy 3: Scaled exits. Sell 33% at 50% of target, 33% at 100%, trail the final 33%.

When Measured Moves Fail

Targets are reached 60-75% of the time. Protect yourself: always use a stop-loss, take partial profits if momentum fades, watch for declining volume toward the target, and close if price stalls at 75% of target for several days.

Measured Moves on Our Platform

Every pattern detection includes an automatically calculated measured move target. Pro and Premium users see the target plotted on the chart alongside entry and stop-loss levels.

Open the Scanner to see patterns with calculated targets, or sign up to track detections as they approach their measured move targets.