Wolfe Waves

[alokdaga]

Re: Wolf Wave

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

I tried plotting wolfe wave on some scrips on daily as well as hourly but most of the time it does not follow the pattern ! Means I am wrong at interpreting !!! Can you suggest the right way to locate it

Rgrds

Alok

 

[nautilus]

Re: Wolf Wave

I tried plotting wolfe wave on some scrips on daily as well as hourly but most of the time it does not follow the pattern ! Means I am wrong at interpreting !!! Can you suggest the right way to locate it

Rgrds

Alok

Hi Alok:

I mostly "eye-ball" the charts - and the pattern just emerges visually and it also gives you a feel. But if you are trying to do it mechanically than a charting sofware such as Metastock will help you find patterns mechanically - only thing is you will have to write a user study for it. I haven't written a study but I am sure one of the forum members will help out definitely - I think Chedda seems very good with it - he may be able to help.

If so what you can try is search for a pattern with five waves (as shown in the example you posted on the hourly chart Reliance) and then create a study which will show a five wave pattern - the criteria being for up waves (1<3<5) and for the down waves (2<4) and use the parameters/ limits/ criterai that would satisfy your other conditions.

I hope it helps.

Nautilus

Ps: This link may also help http://www.dacharts.org/archives/Wolf Wave/

 

[alokdaga]

Re: Wolf Wave

Hi Alok:

I mostly "eye-ball" the charts - and the pattern just emerges visually and it also gives you a feel. But if you are trying to do it mechanically than a charting sofware such as Metastock will help you find patterns mechanically - only thing is you will have to write a user study for it. I haven't written a study but I am sure one of the forum members will help out definitely - I think Chedda seems very good with it - he may be able to help.

If so what you can try is search for a pattern with five waves (as shown in the example you posted on the hourly chart Reliance) and then create a study which will show a five wave pattern - the criteria being for up waves (1<3<5) and for the down waves (2<4) and use the parameters/ limits/ criterai that would satisfy your other conditions.

I hope it helps.

Nautilus

Ps: This link may also help http://www.dacharts.org/archives/Wolf Wave/

Thanks a lot - charts are explanatory - I will try to take visual look or program something in metastock. It means that trades can be taken usually after point 3 since by that time we can estimate a wave formation - isn't it?

 

[chheda]

Re: Wolf Wave

Hi Alok ,
Nautilus is right that when u try to use wolf wave your eye set and find it on visual inspection also feel comes with experience.
To search this pattern for bullish (bearish) condition when u find 3 swing with 2nd top (bottom) > (<) 1st bottom (top) and 3rd bottom (top) less (greater) then 1st bottom (top) u have to draw a Horizontal Line from 1st bottom (top) and a trend line from 1st swing bottom (top) to 3rd swing bottom (top) . Now if u find the 4th swing top (bottom) above (below) Horizontal line and price again reverse and cross Horizontal line then put that instrument in your watch list and as soon as price touch the trend line drawn from 1st bottom (top) to 3rd bottom (top) the wolf wave pattern complete . Now when price reverse after making 5th swing bottom (top) at or little below (above) trend line u can find a sideways pattern (for example in reliance (bearish condition) u can find sideways pattern whose support is around 837 ) when u find break out from such resistance (support) u can enter the trade with stop loss below (above) 5th swing bottom .

I hope it helps.

Harish Chheda

 

[nautilus]

Re: Wolf Wave

Hi Alok ,
Nautilus is right that when u try to use wolf wave your eye set and find it on visual inspection also feel comes with experience.
To search this pattern for bullish (bearish) condition when u find 3 swing with 2nd top (bottom) > (<) 1st bottom (top) and 3rd bottom (top) less (greater) then 1st bottom (top) u have to draw a Horizontal Line from 1st bottom (top) and a trend line from 1st swing bottom (top) to 3rd swing bottom (top) . Now if u find the 4th swing top (bottom) above (below) Horizontal line and price again reverse and cross Horizontal line then put that instrument in your watch list and as soon as price touch the trend line drawn from 1st bottom (top) to 3rd bottom (top) the wolf wave pattern complete . Now when price reverse after making 5th swing bottom (top) at or little below (above) trend line u can find a sideways pattern (for example in reliance (bearish condition) u can find sideways pattern whose support is around 837 ) when u find break out from such resistance (support) u can enter the trade with stop loss below (above) 5th swing bottom .

I hope it helps.

Harish Chheda

Hi Harish:

Thanks for picking up the thread.

Regards

Nautilus

 

[chheda]

Re: Wolf Wave

Hi Harish:

Thanks for picking up the thread.

Regards

Nautilus

Hi Nautilus,

Thanks for encouragement and your kind words .

When ever you have a time plz see the attached diagrams in my previous post on 7 counts of wolf wave and comment on same , so I know that I am right or wrong in interpreting your explanation of 7 counts in wolf wave .

Regards

Harish Chheda

 

[nautilus]

Re: Wolf Wave

Hi Nautilus,

Thanks for encouragement and your kind words .

When ever you have a time plz see the attached diagrams in my previous post on 7 counts of wolf wave and comment on same , so I know that I am right or wrong in interpreting your explanation of 7 counts in wolf wave .

Regards

Harish Chheda

Hi Harish:

I went through your explanations in the previous post and your interpretations are right, but I could not see the diagrams that you mention. Please post them if you can for the benefit of the forum. Thanks.

Nautilus

 

[chheda]

Re: Wolf Wave

Hi Harish:

I went through your explanations in the previous post and your interpretations are right, but I could not see the diagrams that you mention. Please post them if you can for the benefit of the forum. Thanks.

Nautilus

Hi Nautilus ,
Plz find the attach diagrams for 7 counts of wolf wave .

Regards
Harish Chheda

 

[nautilus]

Re: Wolf Wave

Hi Nautilus ,
Plz find the attach diagrams for 7 counts of wolf wave .

Regards
Harish Chheda

These basically demonstrate the 7 counts - sometimes there may be minor variations.

Nautilus.

Ps: harish i need your assistance on another matter - there are a couple of metastock charts that I want to paste on one of my threads but I just can't seem to do it - would you please guide me. Thanks.

Nautilus

 

[chheda]

Re: Wolf Wave

These basically demonstrate the 7 counts - sometimes there may be minor variations.

Nautilus.

Ps: harish i need your assistance on another matter - there are a couple of metastock charts that I want to paste on one of my threads but I just can't seem to do it - would you please guide me. Thanks.

Nautilus

Hi Nautlius ,

Open Chart > Go to File Menu > Save as HTML > This will open Your save As HTML Box and give u Two Option select PNG as type (JPEG file use more KB and some time exceed 100 KB limit of forum upload limit) and save it in folder u wish > Open the folder where u save that charts with html file u find saved charts in your folder ready to upload in forum .

Thanks & Regards

Harish Chheda