Measured move
A measured move is a technique for estimating how far a is likely to travel after breaking out of a chart pattern, by measuring the size of a prior price swing and projecting that same distance from the breakout point. It shows up across many chart patterns as the standard way analysts turn a pattern into an actual rather than just a directional call.
The specific distance measured depends on the pattern. In a , it is the vertical distance from the head down to the neckline, projected below the neckline once price breaks down. In a or a , it is the depth of the cup or the length of the pole leading into the flag, projected from the breakout point in the direction of the move. In a or , it is the height between the peaks or troughs and the middle point between them. In each case, the logic is the same, the size of the move that built the pattern is treated as a rough guide to the size of the move the pattern releases once it resolves.
A measured move is best treated as a rough guide rather than a precise prediction. It gives investors a reasonable target for taking profits or judging whether a move still has room to run, but plenty of breakouts fall short of their measured target or run well past it, since the technique is based on typical historical pattern behavior rather than any guarantee tied to the specific in question.