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Thursday, November 26, 2009

How Does The Power Spike Swing Trading Strategy Work? - A Dynamite Stock Trading Strategy!

By Kevin Butler

Are you seeking a swing trading strategy that earns above-average profits?

I know just what you mean - in fact growing wealth and earning profits is the whole reason for trading stocks. And you can take advantage of exceptional profit opportunities by utilizing a solid swing trading strategy.

** I'VE GOT A SECRET FOR YOU... AND IT IS THIS:

The Power Spike Swing Trading Strategy is storming through Wall Street like an F5 tornado, earning staggering profits for thousands of traders including myself. And it can do the same for YOU!

To be a swing trading strategy that is superior and highly successful, it must be developed from a strong technical pattern. And the Power Spike Swing Trading Strategy meets that definition perfectly, being developed from a unique technical pattern that consistently delivers outstanding profits.

** WHAT IS A POWER SPIKE?

A power spike is an event where the volume of one day soars much higher than the volume of recent days. For one reason or another, the stock is being traded at levels that are far beyond the norm.

A power spike identifies a moment of extreme emotional trading. People are rapidly getting into and out of this stock. And this intense level of emotional trading often produces a big surge in price (i.e. a terrific profit opportunity!).

A power spike precedes a strong price move.

This highly profitable technical pattern is the foundation of The Power Spike Swing Trading Strategy. And we can use this technical pattern to identify outstanding swing trading opportunities.

** WHAT'S THE SECRET METHOD OF FINDING A HIGH PROFIT POWER SPIKE? It is this...

Envelope Penetration.

The method utilized by The Power Spike Swing Trading Strategy to identify and locate a power spike is:

1. Place Bollinger Bands to the volume data.

2. When the volume moves through the upper band, a power spike has happened.

3. The intensity of the power spike is calculated by the percentage of the total volume that is seen above the upper band.

*** WARNING *** ONLY CONSIDER TRADING POWER SPIKES WHERE A MINIMUM OF 15% OF THE TOTAL VOLUME OCCURS ABOVE THE UPPER BAND.

The probabilities of a successful trade increase with the strength of the power spike. So you'll lean towards trading the stocks displaying the strongest spikes when you use The Power Spike Swing Trading Strategy.

When a power spike shows less than 15% penetration, it is weak and shouldn't be considered a good trading opportunity. Fortunately power spikes happen all the time in numerous stocks, so you'll always have plenty of strong spikes and opportunities to earn profits.

The Power Spike Swing Trading Strategy gives you one of the most consistent and profitable opportunities you'll find anywhere, and thousands of traders are using this technical pattern right now to earn huge returns. It is easy to see why this is a favorite of so many and a powerful weapon for your stock trading arsenal. - 23162

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