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

December 9th, 2009 by Kevin Butler Leave a reply »

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 really true. And there’s incredible opportunities to earn exceptional 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 do so many stock traders absolutely love this trading system?

** ADVANTAGES OF A STRONG TECHNICAL PATTERN TRADE SYSTEM

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.

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.

As a response to the high level of emotional trading, a strong move in price often follows. Big spikes signal big moves. The power spike is a strong sign that a substantial price move is imminent.

** OUTSTANDING STOCK TRADING PERFORMANCE

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 distance equals profits. And a power spike trade can often produce double-digit profits within just a few short days.

Strong internal momentum is built due to the emotional trading occurring on the spike day, and this momentum is released in the ensuing price move. This produces a price surge that typically 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?

** PINPOINTING POWER SPIKES

How can you locate 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 applied to the volume data and 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.

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 method of ranking power spikes is a great way to make initial trade selections.

*** WARNING: A POWER SPIKE IS NOT A TRADE SIGNAL

A power spike by itself is not a signal to jump into a stock trade. The trade signal will occur sometime after the power spike develops, usually with a few days.

Before you invest money you must first know which direction the expected move is likely to go and when you should pull the trigger and get into the trade. These questions are answered by how the price reacts after the power spike occurs.

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?

Find out more about The Power Spike Mechanical Stock Trading System , just visit Kevin Butler’s site and you’ll get all the incredible details. FREE VIDEO COURSE: Get The Master Plan to Successful Stock Trading and learn how to trade like a pro.

Advertisement

Leave a Reply

Anti-Spam Protection by WP-SpamFree