Wolfe

[bubba 10]

i thought this was an interesting sequence from today. lots of setups i noticed today.

[Tasuki 10]

hey tasuki, I don't know if you are aware of this but there is a setting I just found under format symbol that asks whether you would like to you trade volume or tick count for tick volume. Just thought I'd pass that along

 

Waveslilder, See attached chart.

This really doesn't belong in the thread on Wolfe Waves, but I don't know where else to put it, and it does address your comment. The whole business of tick count vs trade vol confuses me. I thought I understood it until I did a comparison of different charts, and I see that a chart set to tick bars looks the same whether you choose tick count or trade vol on that tick chart, and the same is true for share (volume) charts---doesn't seem to matter whether you set the volume to tick count or trade vol.

 

Pretty puzzling, actually. I would have thought that a volume chart using tick count for volume would be the same as a tick chart using tick count for volume, but obviously not.

 

If we're going to continue this, maybe we should move it to a more appropriate forum, I just don't know where. There's a forum for a review of Tradestation, but I'm not aware of a forum on TL just for discussing Tradestation charting issues. Maybe there should be one?

[waveslider 10]

They look the same to me.. I have no idea..

The reason I have used this feature in the past is with the "tick countdown indicator" (it has to be set to tick volume). So maybe its just what the indicators you use reference intrabar.

[bubba 10]

nice looking ww this morning

[waveslider 10]

Not sure if this is the same one because of the times on your chart, but i think I saw the same one bubba.

This'll be an interesting experiment. This one has much more horizontal lines to it. I know everyone wants price to go down and test that area below from last week, especially with the gap down this a.m.

[bubba 10]

i did see that waveslider oddly enough, i had a 'canned' ww indicator setup on a chart with a much higher timeframe. it picked it up perfectly. the one i posted was on a little faster chart (relatively). and it looked picture perfect. then the CPI number came out...:o

[bubba 10]

watched this while at home for lunch - no trade, but it was perfect i think.

[waveslider 10]

Here's one I've been trading, just completed. SPY 60 minute chart.

[Tasuki 10]

Wave. that was a beauty. Interesting choice for point 1. I'm starting to trade the SPY now, so that was very helpful.

[waveslider 10]

Either side of a gap is a VERY important point technically. This is often overlooked by the book writers...

The opening side of a gap should be treated as the beginning of a new wave, since a new dynamic is being introduced into the market.

It is commonly used to measure how far the move will continue in the direction of the gap..

glad that helped you tasuki. SPY is not easy to trade, I use it mostly to hedge, unless the market is really trending.

[Tasuki 10]

SPY is not easy to trade, I use it mostly to hedge, unless the market is really trending.

 

Well, I got the idea of trying to trade the SPY because it follows the ES almost tick for tick. The patterns on the charts are identical. The reason for trading the SPY rather than the ES is because it moves in smaller increments, so you can risk less if you are pathologically risk-averse, as I seem to be.

 

So, why would the SPY be harder to trade than the ES?

[bubba 10]

here's an interesting sequence of chart patterns. the 3rd pattern is in progress

 

* i should add - it seems every pattern 'in progress' i have posted - fails

 

[waveslider 10]

Nice! I hope you are trading this Bubba - - these have been some great patterns. I almost commented on the one you marked in progress. I'm working that same pattern. Great swinging market for Andrews pitchforks too

[bubba 10]

hehe - no, not a penny. someday i hope... (praying actually)

[duzntmttr 10]

Waveslider ,

 

Can you explain the volume rules for the Wolfe wave briefly ?

My understanding from observing a lot of charts is this.

1. Point 1 should be the lowest volume of all points.

2. point 2 will have the highest volume.

3. Point 3 's volume will be higher than 1 but less than 2

4. Point 4 's voume ?????

5. Point 5 's volume will also be higher than average.

 

Am I on the right track ? or not even close ?

 

Your reply will be much appreciated. Thanks in Advance.

[waveslider 10]

Yes you are on the right track. Look over some of the previous posts, didn't realize we were up to 24 pages- yow.

Basically you are correct. 5 and 2 are where to watch for big volume.

[duzntmttr 10]

Yes you are on the right track. Look over some of the previous posts, didn't realize we were up to 24 pages- yow.

Basically you are correct. 5 and 2 are where to watch for big volume.

 

Thanks for your reply.

Most of the time , I get confused about point 1 . More often than not , there will be at least two points which can be labelled as 1. And identifying point 1 is very crucial in order to draw the line from 1 to 4. So if I see two possible points which can both be point 1, should I take the one with the lowest volume ?

 

Thanks.

[thrunner 10]

Very nice Ww bullish action on IBM. This one is earnings report driven and was very quick (could be over, IBM reports after hrs). This is just an observation after the fact. No position.

[waveslider 10]

Duznmatr:

 

This is something you are going to get a feel for, it is an art and not a science as you've probably heard.

 

Remember that what you are getting into is market structure based on geometry. Additionally there are multiple cycles on higher and lower timeframes that can and will override anything you see on the timeframe you see the pattern on.

 

That being said, pt. #1 should be within the range, and be near the beginning of where the range began. Personally (you can see the charts I posted in this thread) I like to have pt #1 occur at a 50% level (a balance point in the market). Further action tends to swing off of this level, and the wolfe wave occurs when it swings too far.

 

hope that helped

[waveslider 10]

thrunner - - what do the dark red lines mean in your post? I would bet that the target you found turned out to be the halfway point of a larger move higher..?

I see you are using the better volume indicator. That guy (Barry) has come up with some good ideas.

[waveslider 10]

Oh yeah something someone mentioned (I think OAC) earlier.. Wolfe waves seem to work best when the pattern is moving mostly sideways. So your lines (except 1-4) should be pretty horizontal. That's important to keep in mind, because the market can and will accelerate at point 5, or just chop there

[neustaju 10]

In Elliott Wave terms the Wolfe wave often includes variations of a "Terminal Impulse" wave. Also, I have noticed complex corrections form where the last segment of the correction is a triangle(4 goes into the area of 1). The break out following the completion of this triangle is the continuation of the prevailing trend (aka the wolfe wave). Becoming familiar with the Wolfe wave will help new traders distinguish the difference between corrective and trending behaviour.

[thrunner 10]

Sorry waveslider, didn't see your reply earlier. Here is the entire IBM pattern for April 2008. There are 3 Ww indicators with varying settings so it is picking up quite a few swing highs and lows. Most of the bearish patterns in red were nullified or never completed in April. IBM had great earnings reported after hours on 4/16 and it nearly reached the 2002 high of 125.50.

 

I don't follow Ww much, but when I scan it I do see a ton of good signals. This is the first time I noticed how Ww can help in tracking a earnings play on a stock.

 

Yes, Barry has some good ideas on indicators and the Better Volume gives a little more detail at a glance than just a regular volume. His systems are hardly fool proof though, I still remember two years ago he had a YM futures autotrading system on C2 that completely blew up after initial impressive gains for about 6-8 months.

[Guest forsearch]

Yes, Barry has some good ideas on indicators and the Better Volume gives a little more detail at a glance than just a regular volume.

 

The code for the Better Volume in TS uses "V" for "Volume" which on an intraday, tick or volume charts is equivalent to "UpTicks", not the total volume or "Ticks" for a given bar.

-fs

[thrunner 10]

Thank you fs. The IBM chart above had the symbol tick setting set to: For volume use 'Trade vol' instead of 'Tick count', so in fact the chart had the exchange reported volume. If it was set to: For volume use 'Tick count', then the volume shown would had been 'UpTicks', as you wrote.