Binary Options S&P 500, Entry

Times are New York time.

S&P 500 (Nadex:US500) 11:03 a.m. entry: Short the >2118 strike for a $75.00 debit with the index price at $2,122.00.

The chart below shows the Nadex strike price of 2116 positioned at the equivalent index market price of $2,126.48.

Click on chart to enlarge.

S&P 500 (SPX) at 8:15 a.m., 5 days 15-minute bars

My Elliott wave count shows the sideways correction of the wave 5 peak continuing, with the present wave being wave B {-1}.

My bull play on Monday produced a loss because in my attempt to jump on to the momentum, I managed to get in near the peak.'s loss I've modified my entry practice to require a Joe Ross Hook (named after the famous trader who wrote a series of books about his methods). The Hook in a reversal from an uptrend is one bar ending in a lower high immediately after a previous higher high., and from a downtrend, a bar ending in a higher low after a previous lower low.

I'll use Elliott wave analysis to keep me out of trades signaled by Ross when the signal fails to match the wave analysis.

Ross talks about the Hook in most, maybe all, of his books. The book I'm using is his Day Trading by the Minute (1997).

-- Tim Bovee, Portland, Oregon, June 23, 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