This is a summary by Bill Wolfe from a contributor later in this thread.
First of all, I must say that this is not my primary trading system, but I have recently started using Wolf Waves with some success. There was only a couple of other threads on this topic on FF and they quickly died.
I'll start with my understanding of the concept, and expand from there. I would appreciate any active users of this system (classical or modified) to chip in.
The classical system as I understand it is illustrated by the H4 CAD/JPY chart below from last week.
We are looking at a wedge shaped pattern with a count of tops/bottoms or waves. If it is a falling wedge, then #1 is at the bottom. If it is a rising wedge #1 is at the top.
The count goes to 5 which should penetrate line 1 to 3. When 5 is reached, a pending order is placed on the other side of line 1 to 3, with a stop below point 5.
A line is drawn from point 1 through point 4. This is the profit target line. Entry and profit target are illustrated by the green and pink arrows.
This trade had a 69 pip SL and a 325 pip profit target which was reached.
I like this system because of the clearly defined entry, stop and profit target.
I will go into the variations on my next post.
I just noticed that I misspelled Wolfe. I omitted the 'e' on the title and the first several posts.
Edit: Here is a link that is good: http://www.forexmt4.com/_MT4_Tutoria...fe%20Waves.pdf
Another link with a lot of charts: http://www.chart.nu/wolfewave.htm
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First of all, I must say that this is not my primary trading system, but I have recently started using Wolf Waves with some success. There was only a couple of other threads on this topic on FF and they quickly died.
I'll start with my understanding of the concept, and expand from there. I would appreciate any active users of this system (classical or modified) to chip in.
The classical system as I understand it is illustrated by the H4 CAD/JPY chart below from last week.
We are looking at a wedge shaped pattern with a count of tops/bottoms or waves. If it is a falling wedge, then #1 is at the bottom. If it is a rising wedge #1 is at the top.
The count goes to 5 which should penetrate line 1 to 3. When 5 is reached, a pending order is placed on the other side of line 1 to 3, with a stop below point 5.
A line is drawn from point 1 through point 4. This is the profit target line. Entry and profit target are illustrated by the green and pink arrows.
This trade had a 69 pip SL and a 325 pip profit target which was reached.
I like this system because of the clearly defined entry, stop and profit target.
I will go into the variations on my next post.
I just noticed that I misspelled Wolfe. I omitted the 'e' on the title and the first several posts.
Edit: Here is a link that is good: http://www.forexmt4.com/_MT4_Tutoria...fe%20Waves.pdf
Another link with a lot of charts: http://www.chart.nu/wolfewave.htm
: