simple steps to identifty Wolfe

You're right. RCOM showed a broadening formation and may still go down. It's currently testing the bottom trendline of the pattern; but going by the no. of white & NR bars on the RHS, this one might just fail. (Still i wouldn't stick my neck out & buy it at this stage)

Just one question about WWs. Is it compulsory that pt 4 be above point pt 2 (& vice versa for downsloping WWs)?? If so WWs can only develop as wedges and if one knows about wedges one needn't bother to watch out for WWs.
If not, however, it would mean that WWs can also develop as channels. And unlike flags they can develop in the direction of the trend (specially at tops & bottoms). But what if i go by the simple rule that upsloping flags will have a greater tendency to break down & vice versa (even when in-trend) Will that work? Will that make it easier to spot & simpler to gauze?
Another way of spotting them i think would be to look for 3 consecutive & (time) symmetrical (or at least near symmetrical) tops or bottoms (particularly at peak pts of trends). Right?

Also i feel the position of that pt 4 is important (that is the fulcrum of the pattern around which price swivels from up to down or vice versa). In the case of wedge shaped WWs i'd think that 4th point ought to form more towards the broader side (at least around the mid-point of 1-3-5 not any further to the right; this mid-pt rule can also be applied to channels). The position of this point determines the degree of asymmetry, skewedness of demand-supply and by how much price will have to 'swivel' to restore symmetry. On a more mechanical note, it's quite obvious that the position of the 4th point (after 1 has formed) determines how far prices are expected to travel (i.e. the target) after it breaks out of the pattern (and so in a way determines the 'strength' of the pattern).

Also do you have any idea how the volume within the pattern is supposed to develop? (Predicting price with just price or price movement with just price movement has an inherent fallacy - don't you think?).

Good work (as usual ) Hope to see more WW posts & charts from you.

Regards,
Kalyan.

Hi Kalyan,

good analysis! wolfwaves work best on wedges, can be applied to channels , flags also , but the important thing is the trendlines should not diverge, at the most can be parallel.

Not all wedges , flags etc give result, but when wolfe wave develops within them, it makes the high probability setup.

Ya, you notice point 4 as fulcrum, that's right! however, it is a rule that pt4 should be higher than pt 2 in bearish setup.

What we learn on wolfe wave free of cost is very basic , the advance course is very expensive and then only one can understand wolfe waves better.

See ya,
Winston

Presently Do U See Any Share Likely To Shoot Due To Wolf Wave?

Hi friends,

this is nifty chart. Observe two bearish Wolfe wave setups.
However , none of them qualified as valid Ww's.
Reason:

1) in the first part, all conditions satisfied, but trendlines diverge, if it was proper wolfe wave setup, fall would have come after point 5 i.e. price goes above TT and again reverses below TT, but the fall came much late kicking the Adrenalin Driven Wolf Traders.

2) In the Second part, again TT diverge and no point 5 is yet formed, even if it is formed, what about TT diverge? so fall may not come immediately.

I request all members to take pains and find Ww charts in past as well as future development for our own benefit.

Looking forward,
Regards,
Winston

Hi SBalRam,

quick bucks hann????

i am scanning charts, will get soon.

Regards,
Winston

Hellow friends

For more waves and targets look in
http://www.elliottician.com/ and
http://www.elliottician.com/product-...-software.html
chears

Just one humble suggestion. In the attached chart, I feel point no. 3 and 4 have been wrongly marked as point no. 1 and 2. Readers many not confuse it. Valid pattern in wolfe wave.
Regards
R. S. Iyer

Dear RSI

U r right. Actually my software markes the trendlines as 1 2 3 etc etc.
So what u see are trendline numbers. Not Wolfe wave points.

Inadverent error regretted

Ajax

Kind Attention Mr. Winston

Thanks For Ur Kind Response, Look Forward For Ur Kind Analysis N Information

Rgds

S Balram

A correction here please ...

While going through the charts today i noticed that my observation of the broadening formation in RCOM is inaccurate. W.r.t. the chart posted by Winstonn, for it to be a valid broadening pattern pt 4 has to be below pt 2 which is not the case. Actually the diverging top & bottom trendlines created this illusion in my mind but that doesn't satisfy the higher-high-lower-low criterion of a true broadening formation.

I also noticed that RCOM has formed an Inverse H&S consolidation (bet early March & April) & has currently closed above the high of this range (and also above the bar from which the late Feb breakdown took place. A 30 Rs (conservative, if mkts remain strong) move is possible from here.

Sorry for the error.

Regards,
Kalyan.