| Why Is "The Power Spike Mechanical Stock Trading System" So Popular Among Stock Traders? |
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| Written by Kevin Butler |
| Saturday, 28 November 2009 21:32 |
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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?
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. Trade systems are used by professionals to identify high profit opportunities and earn money. And stock traders across the country are raving about the Power Spike Mechanical Stock Trading System, making it 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 A solid technical pattern is what produces consistency, reliability and profitability in mechanical stock trading systems. These patterns consistently predict what the price is going to do next and they can be identified on a stock chart. 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. The volume of that day spikes up and stands out from the recent volume. A moment of extreme emotional trading is what creates a power spike; people are getting into and out of a stock very quickly. This is a time 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. ** OUTSTANDING STOCK TRADING PERFORMANCE One of the unique and outstanding features of the Power Spike Mechanical Stock Trading System is exceptional returns. The price move that follows a power spike is usually very 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 need? ** LOCATING POWER SPIKES How can you quickly and easily pinpoint this highly profitable technical pattern? There are multiple ways used to identify power spikes, but one technique is really the best. This method uses Bollinger Bands. Bollinger Bands are applied to the volume data and 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 suggest you only consider trading spikes where a minimum of 15% of the total volume appears above the upper band. If less than 15% of the total volume penetrates the band, it usually signals a weak spike. 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 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 is not a signal to jump into a stock trade. It isn't the green light to pull the trade trigger. A trade signal will happen after the power spike occurs, usually within 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. The Power Spike Mechanical Stock Trading System is a great way to trade this incredibly profitable pattern and is a resource you should consider very seriously. There are very few technical patterns that can match the reliability and profitability it offers. Are you ready to earn huge profits very quickly? DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about The Power Spike Mechanical Stock Trading System . Stop by Kevin Butler's site today and get all the details. FREE STOCK TRADING VIDEOS: Get The Master Plan to Successful Stock Trading now & learn how to trade like a pro. |