Attachments: A new look at Wolf Waves

A new look at Wolf Waves

#361
May 5, 2016 5:48am May 5, 2016 5:48am

TheBody
| Joined Feb 2014 | Status: Trader | 101 Posts

Found this in audusd 4h! A small WW inside a big WW.

I have taken a buy position expecting it to complete the small WW first, and i will short it once it reaches my top questionmark and expect it to come down to my bottom questionmark in the longer run.

What do you guys think of WW inside WW?

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#362
May 5, 2016 8:56am May 5, 2016 8:56am

JackAntigua
| Joined Aug 2009 | Status: Trader | 288 Posts

Quoting JackAntigua

Disliked

I thought I'd have a quick look at a 5 min DOW chart and just found this one. Not a wedge but a megaphone pattern, be interesting to see if it completes. As an aside, ideally I like to see divergence between points 3 & 5 suggesting possible exhaustion, not present in this example however. {image}

Ignored

And complete it did !

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#363
May 5, 2016 10:17am May 5, 2016 10:17am

TheBody
| Joined Feb 2014 | Status: Trader | 101 Posts

Quoting JackAntigua

Disliked

{quote} And complete it did ! {image}

Ignored

Did u take the trade i plotted to run up again?
I don't have access to DOW index, so maybe you could post it, just to see if the lines i drew in actually hit the target.
It would be a good learning experience for me.

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#364
May 5, 2016 1:35pm May 5, 2016 1:35pm

JackAntigua
| Joined Aug 2009 | Status: Trader | 288 Posts

Quoting TheBody

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{quote} Did u take the trade i plotted to run up again? I don't have access to DOW index, so maybe you could post it, just to see if the lines i drew in actually hit the target. It would be a good learning experience for me. {image}

Ignored

Hi,

Based on where you've drawn your lines, no, the target was not hit. I'm not sure however if I would have drawn the lines where you have though. I use the high/low of the bar rather than draw the line through the candle body and I thought that for a bullish Wolfe Wave, point 2 needs to be higher than point 4 so I'm not sure this one qualifies anyway.

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#365
May 5, 2016 1:54pm May 5, 2016 1:54pm

TheBody
| Joined Feb 2014 | Status: Trader | 101 Posts

Quoting JackAntigua

Disliked

{quote} Hi, Based on where you've drawn your lines, no, the target was not hit. I'm not sure however if I would have drawn the lines where you have though. I use the high/low of the bar rather than draw the line through the candle body and I thought that for a bullish Wolfe Wave, point 2 needs to be higher than point 4 so I'm not sure this one qualifies anyway. {image}

Ignored

Great! Thanks for the feedback!

Learning by doing is far better than learning by reading for me, so i learned something new from you!

And you are right, it doesn't seem to qualify.

#366
May 6, 2016 2:39am May 6, 2016 2:39am

JackAntigua
| Joined Aug 2009 | Status: Trader | 288 Posts

There seems to be no end of possibilities with these Wolfe Waves. This is a DOW 10 pip Renko Mean chart, almost made it to target but if you bailed on the stochastic crossover at the high would still have been a profitable trade.

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#367
May 6, 2016 4:21am May 6, 2016 4:21am

ChicagoRob
| Joined Mar 2008 | Status: Trader | 901 Posts

Quoting JackAntigua

Disliked

There seems to be no end of possibilities with these Wolfe Waves. This is a DOW 10 pip Renko Mean chart, almost made it to target but if you bailed on the stochastic crossover at the high would still have been a profitable trade. {image}

Ignored

Great discovery, JackAntigua. Yes, Wolfe Waves are multidimensional. The Renko bars look interesting - you could keep changing the brick size,
until you found a nice setup.

#368
May 6, 2016 4:56am May 6, 2016 4:56am

wizlon32
Joined Jun 2015 | Status: Zen :-) | 1,185 Posts

Quoting wizlon32

Disliked

Dax Daily. The Weekly chart looks nicer (more compact) but I am showing the daily so I can highlight last Thursdays candle. Not quite a Dark Cloud Cover as it did not close below the 50% line of the previous candle but definitely bearish none the less. The red squares just highlight some similar candles which all preceded bearish moves. And price is currently between the 61.8 and 78.6 Fib sweetspot from the previous LH to LL move. {image}

Ignored

Update on Dax Daily. It'd dropped about 700 pips so far.

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Indentify > Plan > Accept > Execute

#369
May 6, 2016 5:04am May 6, 2016 5:04am

wizlon32
Joined Jun 2015 | Status: Zen :-) | 1,185 Posts

Quoting JackAntigua

Disliked

There seems to be no end of possibilities with these Wolfe Waves. This is a DOW 10 pip Renko Mean chart, almost made it to target but if you bailed on the stochastic crossover at the high would still have been a profitable trade. {image}

Ignored

I have also been looking for Wolfe Waves in Renko charts. Here is a 10 pip GbpUsd Renko Chart that shows the drop that I already posted on a normal candlestick chart.

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Indentify > Plan > Accept > Execute

#370
May 6, 2016 6:10am May 6, 2016 6:10am

ChicagoRob
| Joined Mar 2008 | Status: Trader | 901 Posts

Quoting wizlon32

Disliked

{quote} Update on Dax Daily. It'd dropped about 700 pips so far. {image}

Ignored

Where would your entry point be on this one? Do you wait till a bearish bar closes below the 1-3-5 line,
or take the entry on your chart based on the fib level?

Rob

#371
May 6, 2016 8:44am May 6, 2016 8:44am

wizlon32
Joined Jun 2015 | Status: Zen :-) | 1,185 Posts

Quoting ChicagoRob

Disliked

{quote} Where would your entry point be on this one? Do you wait till a bearish bar closes below the 1-3-5 line, or take the entry on your chart based on the fib level? Rob

Ignored

Hi Rob,

The answer to your question is the point that we disagreed on when I initially posted it. For me an overshoot at point 5 is preferential. I like to project the 2 to 4 line from point 3 to give me a trade entry zone. The bearish candle that I highlighted was right at the top of that "sweet spot" and I entered at market open on Sunday night as I trade Dax with a broker that has similar trading times for Dax as for Forex (not the chart I posted so as not to cause confusion).

Considering that this was a daily chart I would be wary of entering at such a lower area as below the 1 to 5 line, but that's just me.

I also use indicators for confirmation, such as the Awesome Oscillator. By dropping down to the H1 chart the AO showed a nice divergence. That along with my CCI/MA cross was all I needed and it paid off.

Also as I said the HTF was making Lower lows and lower highs. The current retrace was in between the 61.8 and 78.6 Fib which was ideal for a short entry.

Indentify > Plan > Accept > Execute

#372
May 6, 2016 9:47am May 6, 2016 9:47am

fantom
| Joined Dec 2009 | Status: if not now.when | 279 Posts

gbpusd m5

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#373
May 6, 2016 9:51am May 6, 2016 9:51am

wizlon32
Joined Jun 2015 | Status: Zen :-) | 1,185 Posts

Quoting fantom

Disliked

gbpusd m5 {image}

Ignored

And with AO divergence if you drop down to M1. I've been watching the same thing.

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Indentify > Plan > Accept > Execute

#374
May 6, 2016 10:20am May 6, 2016 10:20am

JackAntigua
| Joined Aug 2009 | Status: Trader | 288 Posts

Quoting wizlon32

Disliked

{quote} And with AO divergence if you drop down to M1. I've been watching the same thing. {image}

Ignored

Interesting, divergence shows up on the 1 min stochastics as well.

I was wondering how much notice you take of the ETA or do you just follow the EPA (Target)?

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#375
May 6, 2016 10:35am May 6, 2016 10:35am

wizlon32
Joined Jun 2015 | Status: Zen :-) | 1,185 Posts

Quoting JackAntigua

Disliked

{quote} Interesting, divergence shows up on the 1 min stochastics as well. I was wondering how much notice you take of the ETA or do you just follow the EPA (Target)? {image}

Ignored

Hi JackAntigua,

Your Stochastic divergence is all at point 5. The divergence I like to see is from point 3 to 5. That's not to say that your example isn't relative though, it's just a bit different.

Personally I don't use the ETA in my analysis at all. I get the feeling that Bill Wolfe just chucked that in there to make his patterns seem more technical. What about you, do you use it?

Indentify > Plan > Accept > Execute

#376
May 6, 2016 10:42am May 6, 2016 10:42am

JackAntigua
| Joined Aug 2009 | Status: Trader | 288 Posts

Quoting wizlon32

Disliked

{quote} Hi JackAntigua, Your Stochastic divergence is all at point 5. The divergence I like to see is from point 3 to 5. That's not to say that your example isn't relative though, it's just a bit different. Personally I don't use the ETA in my analysis at all. I get the feeling that Bill Wolfe just chucked that in there to make his patterns seem more technical. What about you, do you use it?

Ignored

I'm still a bit of a Wolfie virgin so I haven't reached any firm conclusions yet. I think it's something that I'll be aware of in the background without considering it sacrosanct.

#377
May 6, 2016 12:29pm May 6, 2016 12:29pm

wizlon32
Joined Jun 2015 | Status: Zen :-) | 1,185 Posts

Here is GbpUsd M15. The pattern started prior to NFP and continued afterwards once things calmed down. Just posting because it will be interesting to see if it completes.

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Indentify > Plan > Accept > Execute

#378
Edited 2:55pm May 6, 2016 1:14pm | Edited 2:55pm

wizlon32
Joined Jun 2015 | Status: Zen :-) | 1,185 Posts

I see a lot of wedge patterns that do not strictly meet Wolfe Wave rules, but many of them would provide profitable trades.

The 3 charts below are GBPUSD D1, H4 and H1 (left to right). Lets see if we get a bounce up from here (many better analysts / traders than me expect it to go lower from here so this might not work out but lets see).

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