Measuring Principle

In techincal analysis, An intangible principle for finding mininum security price targets for traders. The measuring principle uses technical analysis to analyze chart patterns to detect stock levels that, if broken, could lead to a small down leg. More specifically, it allows traders to set a reasonable minimum price target on a stock by weighing the movements of the stock chart pattern against each other.

The measuring principle works well with any clearly-defined technical chart pattern, such as a head-and-shoulder formation or rectangle or triangle. There is no hard and fast mathematical proof that this analysis technique works, but historically it has tended to be relatively accurate. If the stock price begins to diverge from the expected outcome according to the principle, then quick action may be necessary.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Measuring principle — A sender emits a wave which is scattered by an object. The backscattered part of the wave reaches a receiver: The measurement principle of sonar and radar devices …   Wikipedia

  • Measuring instrument — Captain Nemo and Professor Aronnax contemplating measuring instruments in Twenty Thousand Leagues Under the Sea …   Wikipedia

  • Principle of relativity — In physics, the principle of relativity is the requirement that the equations describing the laws of physics have the same form in all admissible frames of reference. For example, in the framework of special relativity the Maxwell equations have… …   Wikipedia

  • principle — /prin seuh peuhl/, n. 1. an accepted or professed rule of action or conduct: a person of good moral principles. 2. a fundamental, primary, or general law or truth from which others are derived: the principles of modern physics. 3. a fundamental… …   Universalium

  • Measuring wheel — Wheel Wheel (hw[=e]l), n. [OE. wheel, hweol, AS. hwe[ o]l, hweogul, hweowol; akin to D. wiel, Icel. hv[=e]l, Gr. ky klos, Skr. cakra; cf. Icel. hj[=o]l, Dan. hiul, Sw. hjul. [root]218. Cf. {Cycle}, {Cyclopedia}.] [1913 Webster] 1. A circular… …   The Collaborative International Dictionary of English

  • Uncertainty principle — In quantum physics, the Heisenberg uncertainty principle states that locating a particle in a small region of space makes the momentum of the particle uncertain; and conversely, that measuring the momentum of a particle precisely makes the… …   Wikipedia

  • Fick principle — Developed by Adolf Eugen Fick (1829 1901), the Fick principle was first devised as a technique for measuring cardiac output. However, its underlying principles may be applied in a variety of clinical situations.The essence of the Fick principle… …   Wikipedia

  • Copernican principle — In physical cosmology, the Copernican principle, named after Nicolaus Copernicus, states that the Earth is not in a central, specially favored position.[1] More recently, the principle has been generalized to the relativistic concept that humans… …   Wikipedia

  • Likelihood principle — In statistics,the likelihood principle is a controversial principle of statistical inference which asserts that all of the information in a sample is contained in the likelihood function.A likelihood function arises from a conditional probability …   Wikipedia

  • Mach's principle — In theoretical physics, particularly in discussions of , Mach s principle (or Mach s conjecture [Hans Christian Von Baeyer, The Fermi Solution: Essays on Science , Courier DoverPublications (2001), ISBN 0486417077,… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.