What constitutes a strong move?

Discussion in 'Trading' started by shaq48, Jan 14, 2003.

  1. shaq48


    What do most think of as a "strong move" on a stock? If a stock has an average daily range of say 1.5 pts what would most consider a strong move as a percentage of range? Has anyone done any studies or research? I'm talking about a move that contains no more than a small pullback..ie: 1 or 2 bars on a 5 min chart. For instance I notice the spy seems to have 1 brush moves of maybe 60 to 80 cents these days...but normal chop is probably around 30 cents. I know I long for expanding ranges but rather than whine about contraction, I'd like to just become better at trading the environment presented. So rather than be looking for a move of 80 cents when 50 is more realistic and then getting out with only 20 to 30 cents I would like to have some orders sitting there waiting ata more realistic spot. I look forward to anything anybody can add as to their observations or studies.