One of the key components to identifying and executing on a good trade setup is knowing what the TARGET is. A chart that gives cleaner clues, or easily identifiable potential target(s) is the preference for all traders.
One such method for determining a target is the Measured Move. To illustrate this concept, I bring you the Weekly chart of CBS (CBS Corp Class B). The chart below shows an initial move from July 2010 to July 2011, the basis for measuring the next move:
As noted within the chart above, the Measured Move is to 35.25 and is 4% from the current price. If long the stock already, be mindful of this level as the Bears may see it as an opportunity to short.
If short the stock here, well, you may take a little more heat here. 😉