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Monday, December 7, 2009

Why Do Stock Traders Love "The Power Spike Mechanical Stock Trading System" So Much?

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 really true. And there's incredible opportunities to earn exceptional profits out of this huge river of money.

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?

** ADVANTAGES OF A STRONG 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.

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.

A strong move in price often follows as a response to the high level of emotional trading. The power spike is a reliable signal that a strong move is imminent.

** MIND-BLOWING STOCK TRADING PROFITS

The Power Spike Mechanical Stock Trading System is renowned for producing exceptional returns, profits that are well above average. A price move covering a large distance often follows the occurrence of a power spike.

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 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?

** PINPOINTING 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.

Apply Bollinger Bands to the volume data. 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.

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.

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.

A terrific way to trade this incredibly profitable pattern is by using the Power Spike Mechanical Stock Trading System. It is a resource you should consider very seriously. Few technical patterns can match the reliability and profitability the power spike offers.

Wouldn't you like to earn huge profits very quickly? - 23223

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