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Thursday, November 26, 2009

How Does The Power Spike Swing Trading Strategy Work? - A Dynamite Stock Trading Strategy!

By Kevin Butler

Are you seeking a swing trading strategy that produces above-average profits?

I know exactly how you feel - in fact the reason for trading stocks is to make money. And using a solid swing trading strategy will let you take advantage of exceptional moneymaking opportunities.

** I'VE GOT A SECRET FOR YOU... AND IT IS THIS:

The Power Spike Swing Trading Strategy is ripping through Wall Street like an F5 tornado, creating staggering profits for thousands of traders including myself. And it can do the same for YOU!

A highly profitable swing trading strategy is one that is based on a solid technical pattern. And the Power Spike Swing Trading Strategy meets this criterion in every respect. It is a unique technical pattern that consistently delivers staggering profits.

** WHAT IS A POWER SPIKE?

A power spike is a situation where the volume of one day soars much higher than the volume of recent days. For one reason or another, the stock is being traded at levels that are far beyond the norm.

A power spike is important because it pinpoints a moment of extreme emotional trading. People are leaping into and out of this stock fast. And a strong surge in price is often created by this high level of emotional trading (i.e. that's a terrific trading opportunity!).

A power spike indicates that a strong price move is likely.

This highly profitable technical pattern is the foundation of The Power Spike Swing Trading Strategy. And we can take advantage of this technical pattern to identify superior swing trading opportunities.

** WHAT'S THE SECRET METHOD OF FINDING A HIGH PROFIT POWER SPIKE? It is this...

Envelope Penetration.

The technique utilized by The Power Spike Swing Trading Strategy to find and identify a power spike is:

1. Bollinger Bands are applied to the volume data.

2. When the volume pierces the upper band or envelope, a power spike has taken place.

3. The strength of the power spike is determined by the percentage of the total volume that is seen above the upper band.

*** WARNING *** ONLY TRADE POWER SPIKES WHEN A MINIMUM OF 15% OF THE TOTAL VOLUME OCCURS ABOVE THE UPPER BAND.

You should favor trading stocks with the strongest spikes because the odds of a successful trade increase with spike strength. So when you apply The Power Spike Swing Trading Strategy you'll lean towards stocks showing the strongest spikes.

When a power spike shows less than 15% penetration, it is weak and shouldn't be considered a prime trading opportunity. Fortunately power spikes happen all the time in numerous stocks, so you'll always have plenty of strong spikes and opportunities to earn profits.

One of the most reliable and profitable opportunities available is found in The Power Spike Swing Trading Strategy and thousands of traders are taking advantage of this technical pattern right now to earn staggering returns. This is one amazing pattern and a powerful weapon for your stock trading arsenal. - 23223

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