WOLF WAVES
_________________________________________________________



In technical analysis, it is a naturally occurring trading pattern present in all financial markets. The pattern is composed of five waves showing supply and demand and a fight towards an equilibrium price. These patterns can develop over short- and long-term time frames such as minutes or weeks and are used to predict where a price is heading and when it will get there.
































If identified correctly, Wolfe waves can be used to accurately predict the scope (equilibrium price) of the underlying security. To identify Wolfe waves, they must have the following characteristics:

  • Waves 3-4 must stay within the channel created by 1-2
  • Wave 1-2 equals waves 3-4 (shows symmetry)
  • Wave 4 is within the channel created by waves 1-2
  • There is regular time between all waves
  • Wave 5 exceeds trendline created by waves 1 and 3 and is the entry point


The estimated price is a price along the trendline created by waves 1 and 4 (point 6).


Subscribe to updates via email:

Enter your email address:


Subscribe  to  fx1618 via RSS
Subscribe to fx1618 by Email
What is RSS???
_________________________________________________________________________________________________________________________________________
Home

Do you like fx1618?
If you think fx1618.com is cool and want to help fx1618, please tell your friends about it via email and blog (or forum)