Wolfe Waves

#2
Re: Wolf Wave

chheda said:
Hi ,
Plz find attach chart of Reliance with wolf wave plotted on it.
Hi:

This is an interesting and an unusual pattern and some times the count can go up to seven. Based on the interpretation of the wolfwave - it looks (atleast on hourly basis) that reliance may be in for an shakeout on the down side - especially if the count goes to seven!

Nautilus
 

karthikmarar

Well-Known Member
#3
Re: Wolf Wave

Thanks Chheda

It was nice of you to explain the wolf wave to us in the chat room. It would be very good if you add that simple explanation on wolf waves in this thread for the benefit of the members. Looking forward to more post from you, my friend...whenever you find time.

warm regards

Karthik
 
#4
Re: Wolf Wave

nautilus said:
Hi:

This is an interesting and an unusual pattern and some times the count can go up to seven. Based on the interpretation of the wolfwave - it looks (atleast on hourly basis) that reliance may be in for an shakeout on the down side - especially if the count goes to seven!

Nautilus
Hi

I am trading this pattern regularly but I don't know about count goes to seven . In book Street Smart Linda Raschke explain wolf wave 5 counts .
Plz Nautlius can u explain in details about 7 count , If possible can u attach some chart to understand the illustration of 7 count .

Thanks in Advance for your help .

Regards
Harish Chheda
 
#5
Re: Wolf Wave

karthikmarar said:
Thanks Chheda

It was nice of you to explain the wolf wave to us in the chat room. It would be very good if you add that simple explanation on wolf waves in this thread for the benefit of the members. Looking forward to more post from you, my friend...whenever you find time.

warm regards

Karthik
Yep,agree with Karthik,would be great to have a simle explanation on the Wolf Wave whenever you find the time.

Great stuff,Chheda.

Thanks.
Saint
 
#6
Re: Wolf Wave

karthikmarar said:
Thanks Chheda

It was nice of you to explain the wolf wave to us in the chat room. It would be very good if you add that simple explanation on wolf waves in this thread for the benefit of the members. Looking forward to more post from you, my friend...whenever you find time.

warm regards

Karthik
Hi
Explanation of wolf wave (from book Street Smart by Linda Raschke):
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.
IMPORTANT POINT: You cannot begin looking for the Wolfe Wave until points
1, 2, 3, and 4 have been formed. Keep in mind that point 3 must be lower than point 1 for a buy setup. It must be higher than point 1 for a sell setup. Also, on the best waves point 4 will be higher than point 1 for a buy setup and lower than 1 for a sell setup. This ensures that absolute runaway market conditions do not exist.
 

Attachments

#7
Re: Wolf Wave

chheda said:
Hi
Explanation of wolf wave (from book Street Smart by Linda Raschke):
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.
IMPORTANT POINT: You cannot begin looking for the Wolfe Wave until points
1, 2, 3, and 4 have been formed. Keep in mind that point 3 must be lower than point 1 for a buy setup. It must be higher than point 1 for a sell setup. Also, on the best waves point 4 will be higher than point 1 for a buy setup and lower than 1 for a sell setup. This ensures that absolute runaway market conditions do not exist.
Thanks a lot,Chheda......great stuff!

Saint
 
#9
Re: Wolf Wave

chheda said:
Hi

I am trading this pattern regularly but I don't know about count goes to seven . In book Street Smart Linda Raschke explain wolf wave 5 counts .
Plz Nautlius can u explain in details about 7 count , If possible can u attach some chart to understand the illustration of 7 count .

Thanks in Advance for your help .

Regards
Harish Chheda
Hi Harish:

The seven count is a continuing pattern extending from point 5 to 6 and 7. In many years of trading I have seen it only once, and I will try and search it from my database and post it on the forum.

My mentor who taught me about the wolfwave going into 7 count told me that if he sees one occuring - he would sell his house and put the money on that trade - the thing is I was never sure whether he was serious or not - so I cannot ratify that fact.

But what he did teach me about it was the market dynamics during these phases. These patterns occur when the markets are psychotic or schizophrenic (meaning us traders) - and the traders are not sure which way the markets are going to move - up or down - and when they move higher they break the previous high and when they move lower they break the previous low - so it is a sort of an expanding wave - 5 being higher than 3 which in turn is higher than 1 and 4 being lower than 2. It defies the classic definition of trend (higher high and higher low etc).

Regards

Nautilus
 
#10
Re: Wolf Wave

nautilus said:
Hi Harish:

The seven count is a continuing pattern extending from point 5 to 6 and 7. In many years of trading I have seen it only once, and I will try and search it from my database and post it on the forum.

My mentor who taught me about the wolfwave going into 7 count told me that if he sees one occuring - he would sell his house and put the money on that trade - the thing is I was never sure whether he was serious or not - so I cannot ratify that fact.

But what he did teach me about it was the market dynamics during these phases. These patterns occur when the markets are psychotic or schizophrenic (meaning us traders) - and the traders are not sure which way the markets are going to move - up or down - and when they move higher they break the previous high and when they move lower they break the previous low - so it is a sort of an expanding wave - 5 being higher than 3 which in turn is higher than 1 and 4 being lower than 2. It defies the classic definition of trend (higher high and higher low etc).

Regards

Nautilus
Hi Nautilus ,

Thanks for your explanation Plz find 2 attached diagrams of 7 counts in wolf wave for bullish condition , which I draw after reading your explanation .

Plz comment on the same and if u find any fault plz clarify it .

Regards
Harish Chheda
 

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