Wolfe

[waveslider 10]

Had to post this poster child pattern from overnight session the other day.

 

Occurring within a range - notice the quick and violent move to pt. #5

[waveslider 10]

Any takers?

not crazy about the point#1 but a nice move down to 5..

[waveslider 10]

Last one worked PERFECTLY. Lots of these showing up recently....

And here's another one....

 

That's SPY on a half hour chart , sort of an ugly format - sorry...

Edited July 8, 2009 by waveslider
symbol info

[taq 10]

this one worked perfectly for me

Bank Of India Hrly

[waveslider 10]

Well I hope someone else on the forum was watching this one... the wolfers out there are cleaning up.

[waveslider 10]

All I can say is, wow - -that is one of the nicest ones I have ever seen.

 

This one is perfect because it fails above the range (marked with horiz. white lines) and below the range.

 

#2 point gave people plenty of time to get long.

 

#4 to #5 was steep and dramatic, beginning with a gap and hardly looking back.

[waveslider 10]

Here we go again -

 

Ever since the market has made this steep move up with no pullbacks, I have been suspicious. Direct sustained moves through resistance are usually a run on stops engineered to create fear. This move has fear written all over it.

 

Fear is what creates a perfect 4-5 move in a wolfe wave, so here we go.

 

Daily charts of $spx.x and FDX.

 

The S&P point #1 starts at the 50% level of a range.

 

The other chart I have here is for Fedex, what is interesting is that it has the same WW pattern, but if you run an Andrews pitchfork on the pattern, the centerline runs perfectly with the WW line. I shorted a little today.

[suriNotes 11]

$SPX.X Wolfe Wave?

Wave 4 is below Wave 2.

It may be violation?

 

Regards,

Suri

 

[suriNotes 11]

Another scenario for SPX.X chart

is Right-Angled Broadening Top pattern....

 

 

Regards,

Suri

 

Edited August 2, 2009 by suriNotes

[waveslider 10]

Suri,

I agree with your broadening top situation.

If you look at the chart I posted, the #1 point is further back.

So point 4 is slightly below point #1.

Having a hard time believing in the rally, internals and volume have just been horrible, so that leaves just short covering powering this one.

The only standout is the nasdaq, which is powering along well.

[suriNotes 11]

I am bit puzzled... I thought I posted this chart in the morning

along with my previous post and now I do not see

 

Anyway, Here is the Broadening Pattern targets if it materializes.

Broadening Patterns are rare but reliable.

 

Some exhaustion rally may still push SPX a bit higher.

 

Regards,

Suri

 

[traderdan 10]

I just found your thread over the weekend. Is this a Wolfe Wave? It's a 377 tick YM chart.

[traderdan 10]

The first chart I posted hasn't reached its target yet - if it does. It could still get there if price keeps coming down. Here is another one that did complete this morning.

[Tasuki 10]

traderdan,

Compare the first and second charts you posted. The second one was just about perfect, but the first one wasn't 100% Wolfe-like, so to speak. Note that pivot 1 in the second chart was right in the middle of the range, and that pivot 2 dipped to new lows, scaring the pants off retail traders (that's what pivot 2 is spoze to do). The first chart lacked those salient features. It still might work out, of course. Just thought I'd point out those details for everyone's edification.

Tasuki

[suriNotes 11]

Here is Potential Broadening Top Pattern formation in @ES...

I'll watch the MidChannel level for key support.

 

Regards,

Suri

 

[traderdan 10]

I see what you're saying. The first one didn't work out in this case.

 

traderdan,

Compare the first and second charts you posted. The second one was just about perfect, but the first one wasn't 100% Wolfe-like, so to speak. Note that pivot 1 in the second chart was right in the middle of the range, and that pivot 2 dipped to new lows, scaring the pants off retail traders (that's what pivot 2 is spoze to do). The first chart lacked those salient features. It still might work out, of course. Just thought I'd point out those details for everyone's edification.

Tasuki

[m4573r 10]

is it a valid wolfe wave pattern?

 

[Guest Tresor]

I would wait for the smaller (green) Wofle on DJ.

[Tasuki 10]

is it a valid wolfe wave pattern?

 

Simple answer: No. this is a rolling chop, not a Wolfe Wave. Look at previous examples and read my psychological description in earlier posts of this thread to understand the WW.

Tasuki

Edited December 11, 2009 by Tasuki

[hesychast85 10]

I am also studying Wolfe Wave. From what has just recently been explained to me, points 1-3 and points 2-4 must converge to be a valid Wolfe Wave pattern. I have not seen those converging elements in most of the charts posted on this thread. Waveslider, Suri....thoughts?

 

http://www.traderslaboratory.com/forums/attachment.php?attachmentid=16870&stc=1&d=1261883188

[waveslider 10]

You are correct that the pattern should converge. Also, the lesson I have learned that is most valuable is that volatility should be high, and the move to point five should be a very fast move.

The chart you posted (don't know what to call you with that user name!) seems to be grinding higher, I doubt it's a WW, though your point one and two look excellent.

[hesychast85 10]

Thank you Waveslider. I came across a site called TheHarmonicTrader...I downloaded his free PDF and was wondering if you had seen his work. Think I will check out Suri's book also.. I am not constantly profitable yet due to MM and RR skills. I like the idea of these patterns (not wolfe wave) being formed by the FIB ratios. Thanks again for you input.

 

Don't worry about the Hesychast thing....you can call me Ron. Peace be unto you.

[Guest Tresor]

I am not constantly profitable yet due to MM and RR skills.

 

What is MM and RR? By the way there is no safer way to pick tops and bottoms than Wolfe. And by the way not all Wolfes must have converging lines to be valid. 100% of my trades are Wolfes with 1/4 having diverging lines. Just my 2 cents.

 

Study Wolfe and nothing else. My today's trade enclosed. Moderate $734 per lot during a two hour morning trade. There are about 10 - 12 such trades during week.

 

Regards

[Tasuki 10]

What is MM and RR?

Regards

 

Tresor, I'm guessing that MM means "money management" and RR probably stands for "risk reward." Just a guess.

Tasuki

[Guest Tresor]

Those abbreviations