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Hi,
With measured moves, do you measure it in percentage gain or in absolute terms?
for example, if stock goes from 2 to 2.5 and 2.51 is breakout point. Does measured move go up to 3.00 (50c move) or 3.135 (a same 25% move)?
thank you for the Amazing course.
If it was in a TR which moved up and down between 2 and 2.5, and then broke above. Then one measuring point is between the bottom and top of the TR. So u would the have a 0.5 MM target. Then it depends on the BO and how strong it is, as 80% of BO fail within 5 Bars. So watch for a Bull bar finishing on or near its high.
Just adding to John's response, MM are not based on the move's percentage. Instead, you use the size of previous movement.
Let's say you had a successful breakout that moved the price for 50 ticks and, after that, the price started the channel phase. It's reasonable to bet that the market will move the same amount (50 ticks) before going back to the starting point.
Best,
