Wolfe Waves


Forex strategy for profitable trade, «Wulff Wave» / «Wolfe Waves»

This is perhaps the most unique of its kind and effective trading strategy with which I have ever encountered! It was developed and offered for trade by Bill Wolfe. Which more than 10 years earning a living by trading tool S & P.His son Brian is also selling this tool — S & P. Brian extended trade on the «Wolf waves» and other markets.

The theory of wave patterns by Bill Wolfe is based on Newton’s 1 st law of physics, which reads as follows: «every action has its own resistance.» This movement creates a pronounced wave with a very valuable capability of projection. More clearly, this wave is formed as soon as there is good volatility in the market. If you are a little some practice, it is easy to learn how to instantly identify these PROFITABLE model as forex and other financial markets.

The following basic rules make sense as soon as you consider these examples. (It is important that you pay attention to the unusual sequence of counting waves. How do you then see it will be necessary for the inductive analysis of the waves).

Starting from the top or the base price on the bar graph, we define the starting point of our frame of reference of the new wave. This count is done for the scheme to purchase. And so we begin to count the waves from the top. (Score wave Wolfe was carried to the contrary, if we were starting it from the ground, trying to find the schema for sale).

1. Wolfe Wave # 2 — top.

2. Wolfe Wave Number 3 — foundation of the first reduction.

3. Wolfe Wave number 1 - base prior to wave 2 (top). Point 3 must be lower than point 1.

4. Wolfe Wave Number 4 — the top of wave 3. Point of wave 4 should be located above the bottom of wave 1.

5. The trend line should be carried out from point 1 to point 3. Extension of this line of projects for us, the expected reversal point, which we call wave Wolfe № 5. This is the point of entering the market for further movement to the line of the estimated final price (1-4).

6. The estimated final price (Estimated Price at Arrival, EPA) — is the trend line, which was procherchena from point 1 to point 4, and it allows to project the expected target for price movements. Our initial stop is placed just below the formed reversal at point 5. It then we will move to breakeven.

Important moment in the forex strategy «Wolfe Waves»:

you should not look for the «wave of Wolfe has not yet been formed following points: 1, 2, 3 and 4.

Do not forget that for a scheme to purchase, point 3 must be below the 1!

For the scheme to sell it should be above the 1!

In addition, to the best waves Wolf, point 4 will be higher than point 1 for a scheme to buy and less than 1 for a scheme to sell. This fact will ensure that the state of «absolute runaway market» does not exist.

Now let’s examine the examples and see if you can train your eye, in order to get you started to see the schema for the «wave Wolfe«.

Example 1.1 shows us look right «Wave Wolf» when it begins to take shape. Points 1, 2 and 3 should already be built on schedule. Point 2 must necessarily be exactly the minimum or maximum of the fluctuations in the price. After that, between 1 and 3 will need to hold the trend line. It is our project the where we should expect the endpoint 5.

Wolfe Waves-Example1-Postraenie

Example 1.1. S & P — H1 (hourly) bars, a fragment. Point 5 has already been formed. We will buy at the price reverses from the field and put a little below its stop-loss. Now, if we drew a trend line from point 1 to point 4, it gives us a price projection.

Example 1.1A. S & P — H1 bars, a fragment.

Wolfe Waves-Example2-Postraenie

Example 1.2. S & P — H1 bars.

Wolfe Waves-Example3-Postraenie

Price reaches its target with a potential profit of 12 pips!

Example 1.3. Sugar — a 10-tick bars

Wolfe Waves-Example4-Postraenie

CSCE World Sugar # 11 — SBH6

Point 2 — the initial starting point of the model. I always believe that it is easier to start reading it from that point. After this retreat and find a point 1 and then 3. Do not forget that necessarily point 4 must be higher than point 1. Constructed above the trend line points us to a point 5. At this level the market finds its support, so we open a position on the purchase price in the market and place a stop-loss slightly below the 5. The market is moving toward its goal.

Example 1.4. S & P — 5-minute chart.

Wolfe Waves-Example5-Postraenie

Consider the example of «Wave Wolf» on a five-minute price chart. In this structure, we define the time per week on the market S & P is from 3 to 6 circuits. Trend line that connects points 1 and 3, projecting our area for sale. The market usually runs a little over a point 5, so you have to wait to until the price on the chart does not unfold above the trend line, and after that open the bargain. In this example, we buy at the price on the market and place a stop-loss order below the low point of 5. The market then in the next trading hours increases by 2 points (Tool S & P — this is a good indicator)!

Example 1.5. Canadian Dollar (USDCAD) — December 1995.

Wolfe Waves-Example6-Postraenie

Point 2 — the initial frame of reference for this. (We find a point 2 only after what had already formed the points 1 and 3.) Point 2 does not necessarily have to be this long-term trend reversal, it is necessary to make it a maximum or a minimum of large fluctuations in the market. Market is a bit would not reach the predicted us a line.

Example 1.6. Boeing (Instrument BA) — 1995.

Wolfe Waves-Example7-Postraenie

Let’s look at an example on the chart action. Point 2 — at least fairly large fluctuations in the market. Point 4 located below the 1. Trend line that connects points 1 and 3, predicts we point 5 — the place where the market reaches its price target to within a tick! And again, as an example of USDCAD, the deal does not fully reach the predicted target on the downside. But on this fall at 10 pips had ample opportunity to take a very good profit from the market.

Example 1.7. Tool S & P — 10-tick bars.

Wolfe Waves-Example8-Postraenie

«Wave Wolf» is sometimes also formed on the graphical model «three little Indians.» (This combination of graphics, we consider in the near future).

Comments by forex strategy «Wolfe Waves»:

This forex strategy works well on all time scales in the Forex market, easily applied and implemented and are easily identified by traders Forex, facing at least once with a graphical analysis.

«Waves of Woolf» constantly poyavlyayutsya on absolutely all timeframes and currency pairs Forex, CFD, Futures.

In this, I personally recommend to all trading traders pay attention to this forex strategy (as he trades on it very often and I think its a very good strategy forex trading, which allows for minimal risk, to earn a good income)!

Correct identification and knowledge of the subtleties of this model — 90-95% GUARANTEE traders on forex profit!

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Comments (2) on "Wolfe Waves"

  1. […] of the market goes down, rewrites at least Friday and bounces up from the line 1-3. The result is a wave of Wolfe for the purchase of the interval H1 EURUSD. Further price rises up, retest the gray channel, the […]

  2. […] the Wolfe Wave for purchase on EURUSD (H1). The price goes up and practically OED to the target Wolfe Waves — lines, constructed by points 4.1 + level 38.2% of the total downward movement of the latter. Hang […]