Bearish (Continuation) - Measured Move - ChartSchool - StockCharts

Bearish (Continuation) - Measured Move - ChartSchool - StockCharts

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18/2/2014 Bearish (Continuation) - Measured Move - ChartSchool - 1/4 - ChartSchool Learn more about Technical Analysis and Charting Terminology You are here: » ChartSchool » Chart Analysis » Chart Patterns » Measured Move - Bearish (Continuation) Advertisement Measured Move - Bearish (Continuation) The Measured Move is a three-part formation that begins as a reversal pattern and resumes as a continuation pattern . The Bearish Measured Move consists of a reversal decline, consolidation/retracement and continuation decline. Because the Bearish Measured Move cannot be confirmed until after the consolidation/retracement period, it is categorized as a continuation pattern. The pattern is usually long- term and forms over several months. 1. Prior Trend: For the first decline to qualify as a reversal, there must be evidence of a prior uptrend to reverse. Because the Bearish Measured Move can occur as part of a larger advance, the length and severity of the prior decline may vary from a few weeks to many months. 2. Reversal Decline: The first decline usually begins near the established highs of the previous advance and extends for a few weeks or many months. Sometimes this reversal pattern can mark the initial trend change, other times a new downtrend is established by new reaction lows or a break below support . Ideally, the decline is fairly orderly and lengthy with a series of declining peaks and troughs that may form a price channel . Less erratic declines are satisfactory, but run the risk of turning into a different pattern.
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  • Spring '12
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