OK, waveslider, I just finished this thread. Thanks again for starting it. I really enjoyed it and will be looking for WWs and hopefully finding some.
I don't know if this is possible, but maybe you can write down the basics (or even do a video) and you as the thread starter may be able to edit your first post to where I and others can always go to to refresh our memory on the main things to look for in a WW. If you can't edit the first post, a mod should be able to.
For example, these are things I picked up from this thread:
- the 1-3-5 and 2-4 are ideally horizontal or close to.
- in a bullish WW, point 3 is ideally lower than point 1, (which sort of negates the above - lol) and vice-versa.
- point 5 ideally breaks through the 1-3 line.
- point one is part of a range.
- symmetry
- point 4 should revisit the range of 1-2 (this I picked up from
here)
- there is another point I can't remember exactly. Point 2 needs to be a (relatively) new hi/low. ??
Also, volume-related (copy and paste from Duzzntmttr, which you seemed to agree with) things to look for:
1. Point 1 should be the lowest volume of all points.
2. point 2 will have the highest volume.
3. Point 3 's volume will be higher than 1 but less than 2
4.
5. Point 5 's volume will also be higher than average.
Also a few charts of "picture-perfect" WWs would be nice in the first post.
Ok, now some questions of mine:
1. I am having a hard time figuring out where to place point 1. How far to the left do I need to llok to see if we are in a range?
2. You said earlier:
"It really only works in a consolidation phase of the market. I believe point one is supposed to be the first pivot in the range, then point 2 is an attempt at a new high/low, which would fail (confirming range), then point 3 is a low below point 1 which also fails..."
So point 1 should be the beginning of the range? Am I also understanding correctly that most of the time the pattern will go in the direction of the trend (trend which was in place before the range started)?
3. You said :
"5 and 2 are where to watch for big volume.
"
Does that mean we want big volume at 2 and 5?
Thank you very much,
Bert