How To Use The Elliott Wave Principle To Improve Your Options Trading Strategies | Volume 1: Vertical Spreads

How To Use The Elliott Wave Principle To Improve Your Options Trading Strategies | Volume 1: Vertical Spreads

Wayne Gorman

Language: English

Pages: 62

ISBN: B0037Z6Z7C

Format: PDF / Kindle (mobi) / ePub


This long awaited eBook is the first of a multi-part series of options trading eBooks that will teach you how you can use the Elliott Wave Principle to improve your options trading.

Elliott Wave International Senior Tutorial Instructor Wayne Gorman looks at vertical spread strategies that are designed mainly to exploit sharp price movement in one particular direction, including:

• Bull Call Spread
• Bear Put Spread
• Bear Call Ladder
• Bull Put Ladder
• And more!
Drawing from 25 years of market experience – much of which involved options trading with the Wave Principle – Wayne shows you through real-life market examples how the Wave Principle can help boost your options trading.

Here's what you will learn:

• Which wave patterns provide the highest-confidence options trading opportunity - and which ones do NOT
• Which wave position provides you with the optimal market situation
• Which time frames work best with each options trading strategy
• How to apply Elliott wave rules and guidelines, including Fibonacci ratios
• Where and how to set entry, price target and exit levels
• How to better determine whether or not to hold the position until expiration
• How to achieve the optimum risk/reward ratio by attempting to maximize potential profit and yield, and minimize potential loss.
• How to better manage situations that involve uncapped risk
• How to fine tune strike prices and expiration dates
• What type of Elliott wave structure should precede your entry point and why
• And MORE!

 

 

 

 

 

 

 

 

 

 

 

four, it would be ideal to see the previous wave at one lesser degree (i.e. the final leg of the preceding wave one or three) unfold as an ending diagonal, a truncated fifth, or a fifth wave extension — all patterns that imply an immediate and swift reversal in trend. If you don’t see any of these game-changers in the previous wave at one lesser degree, then you have to spot some other indication of change. This could be a reversal on the weekly bar chart or a completed five waves in the fifth

four, it would be ideal to see the previous wave at one lesser degree (i.e. the final leg of the preceding wave one or three) unfold as an ending diagonal, a truncated fifth, or a fifth wave extension — all patterns that imply an immediate and swift reversal in trend. If you don’t see any of these game-changers in the previous wave at one lesser degree, then you have to spot some other indication of change. This could be a reversal on the weekly bar chart or a completed five waves in the fifth

is at 1,876.75, the end of Minor wave 4. Let’s see what happens. Figure 19 Figure 19 shows that we did, in fact, make a swift reversal back to (and even beyond) where the diagonal began. The move unfolded as Minute waves through of Minor waveA(red) of Intermediate wave (2) (blue). Had we done a bull call spread, the trade would have been a success. Assume that we got the move, did the bull call spread and we got out. Now what? Unless our wave count is totally wrong, Intermediate wave (2)

Figure 20 Figure 20 shows that Minor wave A within wave (2) has retraced .382 of Intermediate wave (1) at 1,894 (the exact .382 level was 1,893.25). This is important, because second waves do NOT make shallow retracements. They generally carve out much deeper ground, such as .500, .618, .786 and so on, as high as possible while staying below the start of wave one. So we’re going to plan for the C wave within wave (2), and we’re going to look for a much deeper retracement. I’ve added a

at the next lower degree: The same as always: An ending diagonal, truncated fifth wave, fifth-wave extension, etc. I would rely on rules only for second and fourth waves, due to the uncapped risks. Those are: Wave 2 always retraces less than 100% of wave 1, and the end of wave 4 can never enter the price territory of wave 1. Figure 28 Ultimately, the ratio call/put spreads are most likely for those traders who just can’t stay out of the market — they always have to do something. Whether the

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