Cutten, how do you recognize that? I look for volume behind the moves, but are there other things to look for?
This has been so hard for me. I have learned to cut losses very early. But dang... it's so hard to let profits run...
A meaningful move on a daily chart is found too often. Normal market noise/chop on a daily chart = some meaningful moves on an intraday chart (e.g. 5-min, 1-min). Normal market noise/chop on a 1-min chart = some meaningful micromoves on a 42 tick chart. In general: market noise/chop in a higher time-frame can be meaningful moves in a lower time-frame. So... pick your trading time-frame and compare to the backdrop higher time-frame.