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Monday, December 7, 2009

Why Is "The Power Spike Mechanical Stock Trading System" So Popular Among Stock Traders?

By Kevin Butler

Stock trading is the best at-home moneymaking opportunity ever. In fact, can you believe that more than FIFTY BILLION dollars change hands every day on the New York Stock Exchange?

It's absolutely true. And you have tremendous opportunities to earn big profits out of this huge river of money.

Professionals and amateurs alike use 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, becoming a national phenomenon and a favorite for thousands of traders.

Why do so many stock traders have such devotion to this trade system?

** TRADE SYSTEM BASED ON A SOUND TECHNICAL PATTERN

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 the product of a sound technical pattern called a "Power Spike". A power spike happens when the volume of one day is a lot higher than the average volume of recent days.

It is one day where the volume spikes up and stands out from the recent volume.

The high volume signals a moment of extreme emotional trading, people are leaping into and out of a stock very fast. It 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.

** SUPERIOR STOCK TRADING RETURNS

Huge profits is just one of the unique and outstanding features of the Power Spike Mechanical Stock Trading System. The big move that follows a power spike is often strong and covers a large distance.

Price movement is what becomes trade profit. And a power spike trade frequently yields double-digit profits within just a few short days.

The emotional trading occurring on the spike day builds internal momentum that is released in the price move. As a result, the price will cover a large distance and move 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 want?

** FINDING POWER SPIKES

How can you locate this highly profitable technical pattern?

There are several ways you can identify a power spike, but one method is considered the best. This method uses a technical indicator called Bollinger Bands.

Bollinger Bands are applied to the volume data and a power spike occurs when the volume penetrates the upper band.

Power spike strength is determined by calculating how much of the total volume appears above the upper band. The odds of a successful trade increase with the strength of the power spike.

As a general rule, I only consider trading spikes where a minimum of 15% of the total volume appears above the upper band. Less than 15% penetration usually signals a weak spike.

Another advantage of this method of power spike identification is that it allows you to rank and compare spikes in multiple stocks. A 46% penetration spike in stock "A" is preferred to a 25% penetration spike in stock "B".

This method of ranking power spikes is a great way to make initial trade selections.

*** WARNING: A POWER SPIKE IS NOT A TRADE SIGNAL

A power spike by itself is not a signal to jump into a stock trade. The trade signal will occur sometime after the power spike develops, usually with a few days.

Before you invest money you must first know which direction the expected move is likely to go and when you should pull the trigger and get into the trade. These questions are answered by how the price reacts after the power spike occurs.

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? - 23217

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