Measured Move Down (ABC)
Definition
Decline, weak bounce, then a second decline of similar length.
Psychology
Down, weak bounce, down again — the second drop mirrors the first.
Real-life analogy
💡 Two waterfalls separated by a calm pool.
Expected direction
down
Entry / Stop / Target
Entry: On the break below the bounce's lower boundary. · Stop: Above the bounce high. · Target: Leg-1 length projected from the bounce high.
Historical behaviour
Frequent in bear phases.
Illustrative success rate
Leg 2 ≈ leg 1 in ~60% of cases · Medium reliability
Common beginner mistakes
- • Buying the weak bounce
Quick quiz — did you understand?
1. Is the Measured Move Down (ABC) generally considered bullish, bearish, or neutral?
2. After a confirmed Measured Move Down (ABC), the expected direction is usually:
3. Which is a common beginner mistake with the Measured Move Down (ABC)?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.