The first leg and the second leg of a trend tend to be the same size. Project the first leg's range from the breakout of the consolidation to read the target. Works for advances and declines alike.
A measured move is the idea that a single trend advances in two legs of roughly equal size.
There is a strong first wave (the first leg, leg 1), then a pause where price consolidates (the correction), and when the pause ends, a second wave (the second leg, leg 2) pushes in the same direction. The range of that second leg comes out roughly equal to the first. That is the skeleton of a measured move.
It is also known as ABCD. A→B is the first leg, B→C is the correction, C→D is the second leg, and the basic form is AB ≈ CD.
It is best understood not as a particular shape but as a method for measuring a target. When you need to estimate how far a triangle or a flag will carry once it breaks, this is one of the plainest and most reliable rulers there is. The same logic flips cleanly for advances and declines.
How to Read
OANDA:USDJPY
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