[waveslider]

Tasuki, the QQQQ chart you posted - I remember that one. I think the #5 pt was too deep to take the pattern seriously. I have watched gartleys trade, but don't believe too much in the fib #s. To me, fibs are too static.

Waves in the market are always changing size and proportion. Fibs can work fine for a methodology with good money management, but so can many things.

One thing - don't take the timing of the WW seriously, it's very flawed. There are better timing methods. Even measuring distance b/w peaks/troughs.

There is a great book by a guy named Suri Duddela that gets deep into butterflies/gartleys. I know his work, but haven't read the book, heard it's good.

[Tasuki]

waveslider, thanks for your replies. Please explain why my first chart (@TU Weekly) was not a true WW. You said that the #2 point needs to be a recent new high or low--was this not a new high? OK, there were higher prices prior to point #1---does that disqualify point #2 from being a "recent" new high? It was higher than the high at the very beginning of October 2006--that doesn't count? Just trying to get the rules clear in my mind.

Ah, one more question--I didn't understand what you meant about the volume at point #4. Is volume analysis part of Wolfe Waves? I don't recall seeing anything about volume on Wolfe's site--maybe I missed it. Many thanks.

[waveslider]

Hi Tasuki, I can tell you what I see, but the more you see the pattern, the more you will get a feeling for not just wolfe waves, but market geometry in general.

Pull up the chart I drew and walk through it with me. The #1 point should occur within a range, not at an extreme. The reason for this is that #2 is a recent high or low and should panic people and cause volume. Above #3 point is where those who entered short will be setting their exits (bearish pattern). #4 point is a higher low putting confidence in longs. #5 point is where shorts cover and breakout traders enter long.

Then volume evaporates and the move fails, causing a quick move back to the 1-4 line.

That's the psychology of the pattern.

The chart you posted does have a pattern, but it is distorted. Imagine if your point #3 was a high instead of a low. Then you'd just have one big wave. What happened instead was a distortion into a mild expanding (broadening) pattern designed also to shake out longs.

I hope you can follow me on that. Post some more charts.

[waveslider]

I don't like the looks on pt #5 on this chart. If that's all we're going to get for a fakeout lower, it looks like volatility is dying in this market.

You want to see some good tails at that #5 location. Looks like the market may sell off a little tomorrow in the a.m. Maybe that will be the scary run for it.

If the # 5 isn't convincingly taken out, then the lower target line is more likely. We'll see.

[Tasuki]

Thanks, waveslider, your description of a proper WW is perfect. Now I have a better idea what to look for--still not sure how to make my eyes see it. I'd give anything for an indicator for tradestation like I have for Gartleys and Butterflies. There is a WW indicator posted on TradersLab, but comments below it say that it's not close to being correct for a true WW, so I don't want to try it and start seeing the wrong thing.

The best I can figure, your chart is for the Russell emini, something like a 120 minute chart? In future, could you (pretty please) include the X and Y axes in your charts, as well as the contract name? It would really help. Thanks.

I'll post some proper WWs if I can find them. Not as easy as I originally thought!

[waveslider]

Sorry Tasuki, it is an hourly chart. They're trying to make a run at it this a.m.

As far as an indicator, I have never seen a good one. Seems likely there won't be a good one, the pattern can have so many nuances...

Anyway, glad to be of help. Keep looking and you will see them. Look for the #2 point first, it stands out the most since it is a recent high/low. If you see a good one and post it we'll both benefit!

[waveslider]

I think it might be making a move at it, the chop down around 790 is a good indication of the market trying to shake out abunch of participants.
I don't see the market going below 775 if the pattern is valid. Most likely the target is about 781.
This could be setting up a big up day for tomorrow if the pattern holds.

[Tasuki]

waveslider, see attached. This is how I see the pattern setting up on my chart in tradestation. Since the price has dipped below point 5-----well, where would you put your stop on this trade, or more generally, where does one put one's stop on Wolfe Waves? For a bullish WW, shouldn't it be somewhere below point 5?

The profit target should be up around 840, yes?