All posts by Tim Newman

Why Is “The Power Spike Swing Trading Strategy” Such A Hit With Stock Traders?

The stock market is a great place to make profits; it is the best at-home moneymaking opportunity ever. In fact, over FIFTY BILLION dollars in stocks are traded every day on the New York Stock Exchange. Isn’t that amazing?

It’s really true. And there are incredible opportunities to earn exceptional profits out of this huge river of money by using a sound swing trading strategy.

Professionals and amateurs alike utilize swing trading strategies to pinpoint big profit potential situations and make money. And the Power Spike Swing Trading Strategy has taken the country by storm, becoming a national phenomenon and a favorite for thousands of traders.

Why has so many traders fallen in love with this swing trading strategy?

** SWING TRADING STRATEGY DEVELOPED FROM A PROVEN TECHNICAL PATTERN

A solid technical pattern yields consistency, reliability and profitability in a swing trading strategy. These patterns reliably predict how the price will react next and they can be located on a stock chart.

The Power Spike Swing Trading Strategy was developed from a strong technical pattern called a “Power Spike”. A power spike is a situation where the volume of one day is much stronger or higher than the average volume of recent days.

It is a situation where the volume spikes up and stands out from the volume of recent days.

A moment of high emotional trading is what creates a power spike; traders are jumping into and out of a stock very fast. This is a moment of impulsive trading.

Large moves in price frequently happen as a response to intense levels of emotional trading. A power spike is a very good indicator that a huge move is about to happen.

** SUPERIOR STOCK TRADING PERFORMANCE

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

Price distance equals profits. And this swing trading strategy will frequently yield double-digit returns within just a few short days.

High internal momentum is built due to the emotional trading occurring on the spike day, and this momentum is released in the ensuing price move. This creates a price surge that typically covers a large distance and moves rapidly.

The Power Spike Swing Trading Strategy is a reliable and trusted tool for many investors because it lets you jump in and earn huge returns fast. You make big profits very quickly.

And isn’t that precisely what you want?

** FINDING POWER SPIKES

You want to quickly and easily locate this highly profitable technical pattern, right? How can this be done?

There are many techniques one can use to pinpoint a power spike in order to use the swing trading strategy, but one technique is considered the best. This technique uses a technical tool called Bollinger Bands.

Bollinger Bands are placed on the volume data and a power spike occurs when the volume pierces the upper band.

The amount of the total volume appearing above the upper envelope determines the strength of the power spike. More intense spikes increase the odds of a winning trade using the swing trading strategy.

Only spikes where a minimum of 15% of the total volume appears above the upper band should be considered for trading using the swing trading strategy. If less than 15% of the total volume penetrates the band, it generally means a poor spike.

This technique of power spike location provides an additional benefit. It allows you to rank and compare spikes in various stocks. A 42% penetration spike in stock “A” is preferred to a 29% penetration spike in stock “B”.

You can make initial trade selections by using this power spike ranking technique.

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

By itself, a power spike is not a sign to get into a stock trade. The trade signal won’t happen until sometime after the power spike happens, usually within a few days.

You must first determine which direction the expected move is likely to go and when to pull the trigger and jump into the trade before you actually commit hard earned capital. And this will be determined by how the price acts after the power spike takes place.

The Power Spike Swing Trading Strategy is a great way to trade this exceptionally profitable pattern and is a program you should explore. There are only a handful of technical patterns that can compare with the reliability and profitability it provides.

Isn’t NOW the time to make huge profits very quickly using a solid swing trading strategy?

Watch this video, you’ll love the information:

[youtube:1VPqvpdv6Qs;The Power Spike Swing Trading Strategy;http://www.youtube.com/watch?v=1VPqvpdv6Qs&feature=related]

Find out more about The Power Spike Swing Trading Strategy, 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.