The key to recognizing the setup is symmetry. Ideally, waves 1-3-5 are established with very regular timing intervals between moves. The other key ingredient is that the wave 4 should revisit the price range established by waves 1-2 for the best results. Wave 5 is often a false breakout move beyond the bounds of the pattern. Unlike either bull or bear flags, the movement is in the same direction as the overall trend, with the overlapping waves giving signals that an impending reversal is taking shape.
The unique quality about wolfewaves is the objective target projection.
The question is about how much you trust this setup ?
Very much so !!!
I hope they serve as inspiration for further study and successful trading.
Stay tune for example ..... updating.....
Who needs bulls and bears when you can run with the wolfes ?!?!?
The bounce sets up waves 1-4, and it is only a matter of patience to wait for the full pattern completion of wave #5 - a final stop/limit clearing move into close gives us the wolfewave setup.
Target Market opens up next morning at target juncture, and immediately reverses to retest the previous day's highs.
Various Stock Examples
XAU /Gold and Silver Index
Reversal Shifting down to intraday action, a reversal top showed on smaller granularity. Another key element can also be seen here - wave #5 is often made on a divergent signal versus the MACD technical indicator readings in the form of higher prices, lower high in oscillator. Once again, pattern is shown as the initial target objective is achieved.
Related topic
Forex Cash Cow system
or
The ICWR trading system
