The stock market is a terrific place to earn 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. Isn’t that amazing?
It’s really true. And there are tremendous opportunities to make huge profits out of this huge mountain of cash by using a proven swing trading strategy. A swing trading strategy is used by professionals to identify big profit opportunities and make money. And stock traders across the country are raving about the Power Spike Swing Trading Strategy , making it a national phenomenon and a favorite for thousands of traders.
Why do so many stock traders go crazy over this swing trading strategy?
A STRONG TECHNICAL PATTERN TRADE SYSTEM
A solid technical pattern produces consistency, reliability and profitability in a swing trading strategy. These patterns reliably predict what the price is going to do next and they can be identified on a stock chart.
The Power Spike Swing Trading Strategy was developed from a solid technical pattern called a “Power Spike”. A power spike develops when the volume of one day is substantially greater than the average volume of the recent past.
The volume of the spike day shoots up and stands out from the surrounding volume.
This very high level of volume indicates a period of extreme emotional trading, traders are leaping into and out of this stock very quickly. This is a time of impulsive trading.
A strong move in price frequently occurs as a response to the extreme level of emotional trading. The power spike is a reliable alert that a strong move is about to happen.
OUTSTANDING STOCK TRADING PERFORMANCE
The Power Spike Swing Trading Strategy is renowned for making exceptional returns, profits that are well above average. A price move covering a long distance often happens after the development of a power spike.
Price distance equals profits. And this swing trading strategy will regularly yield double-digit returns very quickly.
Internal momentum created as a result of the emotional trading on the spike day is released in a big move in price. The result is price action that covers a large distance and moves rapidly.
The Power Spike Swing Trading Strategy is trusted and used by a lot of traders because it consistently lets a trader earn huge returns really fast. You’ll make unbelievable profits very quickly. And isn’t that precisely what we want in a swing trading strategy?
LOCATING POWER SPIKES
How can one pinpoint and identify this very profitable technical pattern? There are several techniques 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 utilizes a technical indicator called Bollinger Bands. Bollinger Bands are attached to the volume data. A power spike occurs when the volume penetrates the upper envelope. Power spike intensity is determined by calculating how much of the total volume is visible above the upper band. The odds of a successful trade increase with the strength of the power spike.
As a general rule, I only consider trading spikes where at least 15% of the total volume is found above the upper envelope. These are best for a swing trading strategy. Less than 15% penetration usually signals a poor quality spike. Another benefit of this technique is that it allows you to rank and compare spikes in multiple stocks. A 38% penetration spike in stock “A” is preferred to a 21% penetration spike in stock “B”. This power spike ranking technique is an excellent way to make initial trade selections.
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 takes place, often within a few days. Before you invest funds you need to first determine which direction the expected move is likely to go and when you should pull the trigger and venture into the trade. These questions are answered by how the price responds after the power spike happens.
There’s no better way to enjoy the benefits of this incredibly profitable pattern than by getting the Power Spike Swing Trading Strategy. This is a trade tool you should consider very seriously.