Why Is “The Power Spike Swing Trading Strategy” So Popular Among Stock Traders?

The stock market is a great place to make money; 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 true. And this tremendous river of money creates frequent opportunities to earn extraordinary profits.

Professionals and amateurs alike use swing trading strategies to identify high profit potential situations and make profit. And the Power Spike Swing Trading Strategy has captivated traders across the country, becoming a national phenomenon and a favorite for many, many traders.

Why do so many stock traders have such devotion to this swing trading strategy?

** A SOLID TECHNICAL PATTERN TRADE SYSTEM

Proven technical patterns are the foundation for a reliable and profitable swing trading strategy. These patterns can be located and identified on a stock chart. They reliably predict what the price is going to do next.

The Power Spike Swing Trading Strategy is the product of a sound technical pattern called a “Power Spike”. A power spike develops when the volume of one day is much higher than the average volume of the recent past.

It is one day where the volume reaches up and stands out from the recent volume.

The strong volume signals a time of extreme emotional trading, people are flying into and out of a stock very fast. It is a moment of impulsive trading.

A strong move in price frequently occurs as a response to the high level of emotional trading. The power spike is a well established alert that a strong move is poised to occur.

** EXCEPTIONAL STOCK TRADING RETURNS

Big returns is just one of the unique and outstanding features of the Power Spike Swing Trading Strategy. The strong move following a power spike is frequently strong and covers a large distance.

Trade profits are the result of price movement. And trades from The Power Spike Swing Trading Strategy quite regularly produce double-digit profits at lightening speed.

Internal momentum created as a result of the emotional trading on the spike day is released in a strong move in price. The result is price movement that covers a large distance and moves very quickly.

The Power Spike Swing Trading Strategy is trusted and considered a favorite tool by a lot of people because it consistently allows one earn huge returns in a very short period of time. You’ll earn unbelievable profits very quickly.

And isn’t that precisely what you need?

** DETECTING POWER SPIKES

How can one find and identify this very profitable technical pattern?

There are many ways you can use to identify a power spike in order to use the swing trading strategy, but one technique is considered the best. This method uses a technical indicator called Bollinger Bands.

Bollinger Bands are attached to the volume data. A power spike takes place when the volume penetrates the upper band.

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

As a general rule, you should only consider trading spikes where a minimum of 15% of the total volume appears above the upper envelope. These are great for a swing trading strategy. Less than 15% penetration often signals a weak spike.

Another advantage of this method of power spike identification is that it lets you rank and compare spikes in many stocks. A 46% penetration spike in stock “A” is preferred to a 25% penetration spike in stock “B”.

One can make initial trade selections utilizing this power spike ranking technique.

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

A power spike just by itself isn’t an alert to jump into a stock trade. The trade signal will occur sometime after the power spike occurs, usually within a few days.

Before you invest capital you must first know which direction the expected move is likely to go and when you should take action and venture into the trade. These questions are answered by how the price responds after the power spike takes place.

A terrific way to trade this amazingly profitable pattern is by following the Power Spike Swing Trading Strategy. It is a resource you should consider very seriously. Few technical patterns can compare to the reliability and profitability the power spike gives you.

Does the chance of making big returns very quickly using a solid swing trading strategy appeal to you?

Watch this video for more information on this amazing swing trading strategy:

Learn more about The Power Spike Swing Trading Strategy. Stop by Kevin Butler’s site today and get all the details. FREE STOCK TRADING VIDEOS: Get The Master Plan to Successful Stock Trading now & learn how to trade like a pro.

Article Source

Click on pen to Use a Highlighter on this page

Leave a Reply