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1 Dec 2009The 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 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 is the Power Spike Mechanical Stock Trading System such a huge hit?
** A SOLID TECHNICAL PATTERN TRADE SYSTEM
A solid technical pattern is what produces consistency, reliability and profitability in mechanical stock trading systems. These patterns consistently predict what the price is going to do next and they can be identified on a stock chart.
The Power Spike Mechanical Stock Trading System is developed from a strong technical pattern called a “Power Spike”. A power spike is a situation where the volume of one day is substantially greater or higher than the average volume of recent days.
The volume of that day 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.
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.
** 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.
Price distance equals profits. And a power spike trade can often 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 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?
** LOCATING POWER SPIKES
How can you find and identify 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.
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.
Another advantage of this method of power spike identification is that it allows you to rank and compare spikes in multiple stocks. A 46% penetration spike in stock “A” is preferred to a 25% 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 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.
The Power Spike Mechanical Stock Trading System is a great way to trade this incredibly profitable pattern and is a resource you should consider very seriously. There are very few technical patterns that can match the reliability and profitability it offers.
Are you ready 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.