I enjoy learning about other techniques, and came across the Wolfe Wave. At first it seemed impossible to find any good setups for this technique, but after playing with it for several hours I think I'm beginning to see the patterns. I'm finding it interesting, and in some ways relative to the Elliott Wave.
The next two charts show what I believe to be past examples of how the the Wolfe Wave was able to forecast a trade.
The idea is to find waves of a similar nature that relate by time and price. In other words they have a rhythm. That's how I see it, but I'm just learning.
After finding the first four points the traditional trend lines are drawn. Then a line from the apex of points 1 and 4 is also drawn. This will be your "Target Line"
When the price crosses the trend line at Point 5 you place your trade with a close stop.
Now you simply wait until the price reaches the target line.
In a case where the trend lines cross such as in the second chart; the apex provides the Target Date.
I'm intrigued by the method, and in an effort to test what I think I've learned; I created the next two Wolfe Wave setups. These both require a pull back below the trend line to complete the Wolfe Wave setup with (Point 5). That will be the signal to go long.
It will be interesting to see if either of these work out. Please remember I'm just learning about this, and may not understand the method clearly just yet. But I would encourage you to Google it, and find out more for yourself.
Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.