PowerStrike is the latest offering by John Slauson, the creator of ICE™. It is a completely unique MetaStock add-on in that it determines support and resistance based on three phenomena of the market:
- Stock prices are heavily influenced by trading near option strike price levels. These levels greatly influence where important buying and selling occur.
- Support and resistance is based on the concentrated buying and selling of influential traders.
- The human mind gravitates towards memorable, easy-to-remember numbers. These values are typical of option strike prices. Hence many traders' attention is drawn to these numbers providing the potential for even more "concentrated" buying and selling.
Technical Analysis of Stock Trends (9th edition), considered by many to be the â€œbibleâ€ of technical analysis, says this of PowerStrike:
"The unending effort to remove ambiguity from market interpretation extends to identifying areas of support and resistance. MetaStock, an excellent software package, has a number of value added packages. One of the more interesting of these, PowerStrike by John Slauson, attempts to mathematically define support and resistance zones... Slauson noticed that important trading and support resistance in optionable stocks tended to cluster around important option strike price levels... All in all a clever application of number driven analysis to the support and resistance questions.â€
What does this mean to you and your trades? PowerStrike saves you time and frustration and can greatly improve your long and short entry points - with the click of a mouse.
About John Slauson
In a very literal sense, John Slauson wrote the book on MetaStock. In his 12 years with MetaStock, he wrote the documentation for MetaStock software, managed technical support, and managed Reuters DataLink. John also developed trading systems for many noted analysts like John Bollinger, John Murphy, Steve Nison, and others.