Binary Options S&P 500

All times are New York time.

The S&P 500 (Nadex:SPX) opened the day with a strong rise to the upside. This is contrarian to the downtrend that has been in effect since the June 22 peak, so under my draft rules, posted last night, I can't enter a binary options bull position to take advantage.

Click on chart to enlarge.

SPX at 9:57 a.m., 4-days 30-minute bars

Todays uptrend is wave 4 {-2}, and it will be followed by wave 5 {-2} to the downside. Under my rules I'll be unable to trade the 5th wave, also, because they tend to be short and tricky (although not always; there are 5th-wave extensions).

-- Tim Bovee, Portland, Oregon, June 25, 2015

References

My trading rules can be read here.

Elliott wave analysis tracks patterns in price movements. The principal practitioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading. 

Several web sites summarize Elliott wave theory, among them, Investopedia, StockCharts and Wikipedia.

See my post "Chart Analysis: Nomenclature" for an explanation of my method for labeling waves on the chart.

Alerts

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Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

License



All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at www.timbovee.com.Tss s ss'ss