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Monday, November 30, 2009

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

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 absolutely true. And you have tremendous opportunities to earn big 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 is the Power Spike Mechanical Stock Trading System such a huge hit?

** ADVANTAGES OF A STRONG TECHNICAL PATTERN TRADE SYSTEM

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.

This very high level of volume indicates a moment of extreme emotional trading, people are jumping into and out of this stock very quickly. This is a moment of impulsive trading.

Big moves in price often follow as a response to high levels of emotional trading. A power spike is a very strong indicator that a huge 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.

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 trusted and preferred by many traders because it consistently allows you earn huge returns in a very short period of time. You'll make 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 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.

Power spike strength is determined by calculating how much of the total volume appears above the upper band. The odds of a successful trade increase with the strength of the power spike.

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.

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".

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.

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.

Are you ready to earn huge profits very quickly? - 23222

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