Our Trading Language
These terms describe parts of the analysis. A projection or a developing wave structure still has to fit the trend, the predefined Box, and the risk-management plan.
Equal measured move
An equal measured move projects the price distance of one swing from the end of the intervening countertrend swing. It gives us a reference price area to evaluate alongside the wave structure. Reaching that area does not, by itself, confirm a reversal or qualify a trade.
Hypothetical educational example. The measurement identifies a reference area, not an automatic entry.
Wave Compression Setup
A Wave Compression Setup is our term for a developing series of 1–2 waves that suggests price action is building pressure for a larger directional move. The interpretation can be bullish or bearish. It remains a scenario until the structure confirms; a break of its defined invalidation level means that interpretation has failed.
A failed setup can be followed by a sharp move in the opposite direction, but neither continuation nor failure guarantees an explosive move. “Compression” describes the price structure here; it is not a standalone volatility measurement or an entry signal.
For either concept, the chart must identify the relevant structure, what would confirm the interpretation, and what would invalidate it. The existing Box and risk rules still apply.
Start with Trading Basics for the sequence from analysis to risk and trade management.