Measured Move Down (ABC) Chart Pattern — How to Spot and Trade It

Decline, weak bounce, then a second decline of similar length.

In plain words

Two waterfalls separated by a calm pool.

What the classic books say

The Measured Move Down (ABC) is a continuation pattern with reference reliability Medium and illustrative behaviour of Leg 2 ≈ leg 1 in ~60% of cases (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Frequent in bear phases.

Level by level

Beginner

Down, weak bounce, down again — the second drop mirrors the first.

Intermediate

The corrective bounce is typically feeble on volume — that is the tell.

Advanced

Project leg 1's length downward from the bounce high.

Trade plan (educational template)

• Entry: On the break below the bounce's lower boundary.
• Stop-loss: Above the bounce high.
• Target: Leg-1 length projected from the bounce high.
• Check the numbers with the Risk-Reward calculator before any entry.

Common beginner mistakes

• Buying the weak bounce

Practise it now

• ▶ Draw the Measured Move Down (ABC) with live trendlines and a ghost forecast
• 📖 Full lesson in the Learning Hub

_Educational content only — not financial advice. Historical behaviour never guarantees future results._