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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

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

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.

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

Huge profits is just one of the unique and outstanding features of the Power Spike Mechanical Stock Trading System. The big move that follows a power spike is often 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.

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 we need?

** PINPOINTING 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 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.

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.

Does the potential of earning huge profits very quickly appeal to you? - 23212

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