Wolfe Wave Pattern

This method developed Bill Wolfe. This pattern is based on Newton’s first law of physics: for every action there is an opposite reaction. This movement creates a definite wave with valuable projecting capabilities. This wave most clearly sets up when there is good volatility. With a bit of practice, it is easy to train your eye to spot these patterns instantly.

bullish wolfe wave pattern -way2profits bearish wolfe wave pattern- way2profits

  1. Number 2 wave is a top.
  2. Number 3 wave is the bottom of a first decline.
  3. Number 1 wave is the bottom prior to wave 2 (top). Point 3 must be lower than point 1.
  4. Number 4 wave is the top of wave 3. The wave 4 point should be higher than the wave 1 bottom.
  5. A trend line is drawn from point 1 to point 3. The extension of this line projects to the anticipated reversal point which we will call wave 5. this is the entry point for a ride to the EPA line (1 to 4).
  6. The Estimated Price at Arrival (EPA) is the trend line drawn from points 1 to 4. This projects the anticipated price objective. Our initial stop is placed just beneath the newly formed reversal at point 5. It can then be quickly moved to breakeven.

Practical Examples on Wolfe Wave Pattern and detailed understanding, coming soon…..