Why Is “The Power Spike Mechanical Stock Trading System” So Popular Among Stock Traders?
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 really true. And there’s incredible opportunities to earn exceptional profits out of this huge river of money.
Professionals and amateurs alike use 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, becoming 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.
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.
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.
** SUPERIOR STOCK TRADING RETURNS
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.
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 is a favorite for many traders because it lets you get in and earn huge returns within a very short period of time. It produces big profits very quickly.
And isn’t that exactly what we want?
** LOCATING 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.
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 suggest you only consider trading spikes where a minimum of 15% of the total volume appears above the upper band. If less than 15% of the total volume penetrates the band, it usually signals a weak spike.
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”.
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 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.
You must first know which direction the expected move is likely to go and when to pull the trigger and get into the trade before you actually invest hard earned money. And this will be determined 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.
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.