$DJI - Weekly : The Measurement Rule

On the chart below, the pattern illustrated is a Bump-and-Run Reversal Bottom. By using the measurement rule, it can allow you to set a target price. This can be done by either adding the height of the pattern for upward breakouts or subtracting the height for downward breakouts.

However, there is a better method. Thomas Bulkowski has provided formulas that should give more accurate measurements than adding or subtracting the height. Here is the link, http://thepatternsite.com/measure.html. For the Bump-and-Run Reversal Bottom, the highest high can be used instead of calculating a breakout, high, and low multiplied by a percentage. A Bump-and-Reversal Bottom is one of the few patterns you can take only the highest high. In this chart, the target price would be 14,198.10.