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Monday, November 30, 2009

Why Is "The Power Spike Mechanical Stock Trading System" Such A Hit With 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 absolutely true. And you have tremendous opportunities to earn big profits out of this huge river of money.

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

Strong technical patterns are the foundation for consistent, reliable and profitable mechanical stock trading systems. These patterns can be located and identified on a stock chart. They consistently predict what the price is going to do next.

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.

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.

Price distance equals profits. And a power spike trade can often produce 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 you want?

** FINDING POWER SPIKES

How can you quickly and easily pinpoint 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 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.

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

By itself, a power spike is not a signal to get into a stock trade. The trade signal won't develop until sometime 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.

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? - 23210

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