In short term trading, a move of 2-5% on the price of a stock can produce good results on most styles of trading, options, cfd’s etc.

When referring to a clear move, short term traders are looking for that 2-5% move without anything to slow down the stock, such as trend line support or resistance. This ensures the short time frame of the trade, a few days or even as short as overnight. It also helps to avoid any movement in the opposite direction of the trade.

Below is an example of BXB which has a free run, as it has broken free of all trendlines and support lines. The next support line is around $4.55. That is at least a 5% move. Obviously having the movement available does not solely qualify for a trade.

Other aspects need to be added in to stack the odds of probability in your favour. Things such as Bouncing off major support or trendlines, Lower Peaks-Higher Troughs, volume and indicators. These all need to be lined up together to make a high probability and successful trade.

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