Big Movement shows situations when excessively large movement (either up or down) has occurred.  It is a statistically rare movement (>2 standard deviations), allowing for mean reversion strategy.  These situations are interesting for both trend followers as well as swing traders (mean reversion).

How to trade it?

1. For trend followers, it may be a possible sign of a new trend formation.
2. For swing traders it is a possible sign that a correction may be coming.

Both approaches could be right.  We could see a modest pullback before the trend continues.  A swing trader would try to profit from the pullback and then go with the trend.  A trend follower would go ahead and place a trade in the direction of the new trend now, or wait for a short term pullback (but not trade it), and then place a trade in the trend direction.

Swing trading these pullbacks in trends can be tricky. Generally, it is best to just trade with a trend, not against it, unless you’re an experienced trader.

Also, it helps if the Big Movement indicates a trend in the same direction of a longer term trend.  So if you see a Big Movement up, and the price is also in an uptrend on a longer time interval, then a trader should go long (buy).  And vice versa.

Swing traders can confirm a reversal potential (pullback) following a Big Movement with other overbought indicators like RSI to improve their timing and success rates.