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Monday, November 30, 2009

Why Is "The Power Spike Mechanical Stock Trading System" So Popular Among Stock Traders?

By Kevin Butler

The stock market is a great place to earn profits; it is the best at-home moneymaking opportunity ever. In fact, more than FIFTY BILLION dollars change hands every day on the New York Stock Exchange. Did you know that?

It's true. And this huge river of money creates frequent opportunities to earn exceptional profits.

Savvy stock traders use superior 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; it has become 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.

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

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.

Trade profits are the product of price movement. And power spike stock trades quite frequently 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 you want?

** PINPOINTING POWER SPIKES

How can you quickly and easily pinpoint 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.

Apply Bollinger Bands to the volume data. A power spike occurs 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.

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.

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 power spike ranking method is an excellent 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 investing money you need to know which direction the expected move is likely to go and when you should pull the trigger and get into the trade. The way the price reacts after the power spike happens is what will answer these questions.

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.

Wouldn't you like to earn huge profits very quickly? - 23221

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