Continuation Patterns

Measuring Moves and Targets

How patterns give you a target — projecting the prior move from the breakout point.

Most of the patterns in these modules come with a built-in way to estimate a target: the measured move. The core idea is simple — measure the size of the move (or pattern) that preceded the breakout, and project that same distance from the breakout point.

How it works

For a flag or pennant, measure the pole's height and add it to the breakout level. For a rectangle, triangle, or head and shoulders, measure the pattern's height (top to bottom) and project it from the break. The logic is that the energy that produced the first move tends to produce a roughly equal second move once the pause resolves.

target ≈ first move projected from the break
Measure the move into the pattern; project the same distance from the break.

Use it as a guide, not a guarantee

Measured moves are probabilistic objectives, not promises — price often falls short of or overshoots them. Their real value is in planning: they let you set a realistic target before entering, judge whether a trade's reward justifies its risk, and decide where to take partial profit. A target that barely clears your stop distance is a trade not worth taking.

Combine with levels

The best targets are where a measured move lands near an independent level — a prior high/low, a round number, or a higher-timeframe zone. When the projection and a real level agree, the objective is far more credible than a number floating in space. As always: confluence over any single tool.

Check your understanding

  1. 1. A measured move projects…

  2. 2. For a flag, you measure…

  3. 3. A measured target is…

  4. 4. A target that barely clears your stop distance is…

  5. 5. A target is most credible when it lands…

Answer all 5 to check