Measuring Principle

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Dictionary Says

Definition of '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.
Investopedia Says

Investopedia explains 'Measuring Principle'

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.
Search results for

'Measuring Principle'

  • The Rectangle Formation

    http://www.investopedia.com/articles/trading/08/rectangle-formation.asp
    ... It can be successfully traded by buying at support and selling at resistance or
    by waiting for a breakout from the formation and using the measuring principle. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Measuring ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/measuring-interest-rate-risk.asp
    ... Corporate Finance: 11.1 Introduction; 11.2 Agent-Principle Relationship; 11.3 Capital
    Budgeting ... 14.45 Forward Rates vs Spot Rates; 14.46 Measuring Interest Rate ...

  • CFA Level 1 Study Guide - Corporate Finance - Agent-Principle ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/agent-principle-relationship.asp
    ... Corporate Finance: 11.1 Introduction; 11.2 Agent-Principle Relationship; 11.3 Capital
    Budgeting ... 14.45 Forward Rates vs Spot Rates; 14.46 Measuring Interest Rate ...

  • Perspectives on the Risk-Return Relationship | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp4-fund-risk-return
    ... It is a universally accepted principle of investing that risk and return ... intelligent
    investor manages risk by recognizing its existence, measuring its degree ...

  • Perspectives on the Risk-Return Relationship | Investopedia

    http://www.investopedia.com/university/quality-mutual-fund/chp4-fund-risk-return/default.asp
    ... It is a universally accepted principle of investing that risk and return ... intelligent
    investor manages risk by recognizing its existence, measuring its degree ...

  • Earnings Quality: Defining "Good Quality" | Investopedia

    http://www.investopedia.com/university/accounting-earnings-quality/earnings2.asp
    ... Cash Accounting The first method for measuring operating performance is based on ...
    which they were actually earned (GAAP's revenue-recognition principle) as well ...

  • 10 Most Indebted Nations - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/10-Most-Indebted-Nations.aspx
    ... Measuring External Debt External debt is a measure of the public and private debt ...
    In the end, external debt just means interest and principle payments that are ...

  • 7 Controversial Investing Theories

    http://www.investopedia.com/articles/financial-theory/controversial-financial-theories.asp
    ... Why It's Still Hip.) Fifty Percent Principle The fifty percent principle predicts
    that ... based off a very simple form of technical analysis – measuring odd lot ...

  • CFA Level 1 Study Guide - Financial Statements - Revenue ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/revenue-recognition.asp
    ... Corporate Finance: 11.1 Introduction; 11.2 Agent-Principle Relationship; 11.3 Capital
    Budgeting ... 14.45 Forward Rates vs Spot Rates; 14.46 Measuring Interest Rate ...

  • Series 66 Study Guide - Regulation of Investment Advisors and ...

    http://www.investopedia.com/exam-guide/series-66/regulation-investment-advisors/sec-releases-ia-770-1092.asp
    ... 5.3 Duration and Stock Risks; 5.4 Measuring Portfolio Risks; 5.5 Stock Risk Reduction ...
    An IA does not have to give advice as his/her principle business activity ...

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