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Wednesday, December 9, 2009

Why Is "The Power Spike Mechanical Stock Trading System" Such A Hit With Stock Traders?

By Kevin Butler

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.

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 is the Power Spike Mechanical Stock Trading System such a huge hit?

** A SOLID TECHNICAL PATTERN TRADE SYSTEM

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.

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.

Big moves in price often follow as a response to high levels of emotional trading. A power spike is a very strong indicator that a huge move is imminent.

** MIND-BLOWING STOCK TRADING PROFITS

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.

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 has become a popular and trusted tool for many traders because it lets you get in and earn huge returns fast. You earn big profits very quickly.

And isn't that exactly what we want?

** FINDING POWER SPIKES

How can you find and identify 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 placed onto the volume data. A power spike happens when the volume penetrates the upper band.

The amount of the total volume appearing above the upper band determines the strength of the power spike. 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.

An additional feature of this method is that it lets you rank and compare spikes in multiple stocks. A 38% penetration spike in stock "A" is preferred to a 21% penetration spike in stock "B".

You can make initial trade selection using this power spike ranking method.

*** 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.

You must first know which direction the expected move is likely to go and when to pull the trigger and get into the trade before you actually invest hard earned money. And this will be determined 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? - 23159

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