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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

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?

** TRADE SYSTEM BASED ON A SOUND TECHNICAL PATTERN

The most consistent, reliable and profitable mechanical stock trading systems are based on strong technical patterns. These patterns can be identified on a stock chart and 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.

On one particular day the volume 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 distance equals profits. And a power spike trade can often produce 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?

** FINDING POWER SPIKES

How can you find and identify 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.

Bollinger Bands are placed onto the volume data. A power spike happens 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.

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 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.

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.

Does the potential of earning huge profits very quickly appeal to you? - 23196

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