S&P 500 (Nadex:US500) 2:05 p.m.: Long >2087 for a $64.75 debit with the symbol price at $2,100.65.
I entered immediately after the Federal Open Market Committee monetary policy statement was released. The price movement marked the end of the 2nd wave down according to the Elliott wave count, with the post-statement leap counting as wave 3.
Exit 4:15 p.m. for a $100.00 credit with the index price at $2,100.44.
Results: Shares declined by 0.01% over two hours and 10 minutes, or a -40% annual rate. The binary options produced a 35.3% yield on debit, for a +142,518% annual rate.
Click on chart to enlarge.
|SPX at after-market close, 5 days 15-minute bars|
-- Tim Bovee, Portland, Oregon, June 17, 2015References
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.
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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
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