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Why Is "The Power Spike Mechanical Stock Trading System" So Popular Among Stock Traders? |
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Written by Kevin Butler
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Saturday, 05 December 2009 09:03 |
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The stock market offers incredible moneymaking opportunities. In fact, did you know that more than FIFTY BILLION dollars change hands every day on the New York Stock Exchange?
by KevinButler
The stock market offers incredible moneymaking opportunities. In fact, did you know that more than FIFTY BILLION dollars change hands every day on the New York Stock Exchange?
It's true. And this huge river of money creates frequent opportunities to earn exceptional profits.
Savvy stock traders use superior trade systems to identify high profit potential situations and earn money. And the Power Spike Mechanical Stock Trading System has taken the country by storm; it has become a national phenomenon and a favorite for thousands of traders.
Why do so many stock traders absolutely love this trading system?
** ADVANTAGES OF A STRONG TECHNICAL PATTERN TRADE SYSTEM
Strong technical patterns are the foundation for consistent, reliable and profitable mechanical stock trading systems. These patterns can be located and identified on a stock chart. They consistently predict what the price is going to do next.
The Power Spike Mechanical Stock Trading System is based on a solid technical pattern called a "Power Spike". A power spike occurs when the volume of one day is much greater than the average volume of recent days.
It is one day where the volume spikes up and stands out from the recent volume.
This very high level of volume indicates a moment of extreme emotional trading, people are jumping into and out of this stock very quickly. This is a moment of impulsive trading.
As a response to the high level of emotional trading, a strong move in price often follows. Big spikes signal big moves. The power spike is a strong sign that a substantial price move is imminent.
** MIND-BLOWING STOCK TRADING PROFITS
The Power Spike Mechanical Stock Trading System is renowned for producing exceptional returns, profits that are well above average. A price move covering a large distance often follows the occurrence of a power spike.
Price distance equals profits. And a power spike trade can often produce double-digit profits within just a few short days.
Internal momentum built as a result of the emotional trading on the spike day is released in a strong price move. The result is price movement that covers a large distance and moves very quickly.
The Power Spike Mechanical Stock Trading System is a favorite for many traders because it lets you get in and earn huge returns within a very short period of time. It produces big profits very quickly.
And isn't that exactly what we need?
** PINPOINTING POWER SPIKES
How can you quickly and easily pinpoint this highly profitable technical pattern?
There are many ways to identify a power spike, but one technique works exceptionally well. Bollinger Bands are the key to using this technique.
Apply Bollinger Bands to the volume data. A power spike occurs when the volume penetrates the upper band.
The intensity and strength of the power spike is determined by how much of the total volume appears above the upper band. Stronger spikes increase the odds of a successful trade.
I recommend you only consider trading spikes where a minimum of 15% of the total volume appears above the upper band. When there's less than a 15% penetration, the spike is considered weak.
This method of power spike identification provides an additional benefit. It allows you to rank and compare spikes in multiple stocks. A 42% penetration spike in stock "A" is preferred to a 29% penetration spike in stock "B".
This power spike ranking method is an excellent way to make initial trade selections.
*** WARNING: A POWER SPIKE IS NOT A TRADE SIGNAL
By itself, a power spike is not a signal to get into a stock trade. The trade signal won't develop until sometime after the power spike occurs, usually within a few days.
Before investing money you need to know which direction the expected move is likely to go and when you should pull the trigger and get into the trade. The way the price reacts after the power spike happens is what will answer these questions.
There's no better way to experience the benefits of this incredibly profitable pattern than by using the Power Spike Mechanical Stock Trading System. This is a resource you should consider very seriously.
Are you ready to earn huge profits very quickly?
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