[waveslider]

Bh-trade:
Yes consolidation below that line does work, especially more violent sideways chop. What you don't want to see is a gap lower (below the line) that just keeps running. That means that the 1-3 line is an acceleration line and the 1-3 line is probably the halfway mark to a larger move lower. Multiple touches of the line means the acceleration isn't happening.

[waveslider]

Market touched the green entry line and faded back one more time. Interesting that the Russell is holding its lows while the other indices fall. This is bullish.

By taking out Friday's high and low, ER2 is forming an expanding pattern. Monday was not a trend day on the daily chart, this is more sideways action trying to shake people out.

I like the looks of a slightly different #1 point on this pattern more and more. The reason is because of the way the 1-4 line matches up with multiple peaks. Andrew's line is still looking good for a primary target. This trade needs to form a higher low, break trend lines , and get over 785.9 level marked in black..

[waveslider]

game on... there is quite a bit of potential profit built into this trade.

[Tasuki]

waveslider, you asked me to throw out more ideas, so here goes. Attached chart probably just displays my ignorance. Is this a WW that failed, or is it not a proper WW setup (and if not, why?). I suspect that point 2 isn't a good point 2 because of the higher prices directly to the left, so it's not really a near term top--or is it? How much of a near term top does point 2 have to be? Are there other reasons why this isn't a good setup (other than the fact it failed--even market geometry patterns fail sometimes)?

[waveslider]

Tasuki, see how that when price hit that #5 pt., it started accelerating and didn't even look back? Right in those 2 bars where #5 is, the tails hardly overlap - this was a market in motion. What you want is a failure to accelerate - and some sideways action. Aside from that, this was a very valid pattern - good eye!

The #2 pt ideally would have been an attempt to move out of congestion and that would have invited some longs that would have got washed by pt. #5. That's part of the psychology I explained earlier. But you got it pretty close! The move from pt2 to pt3 was an expanding pattern indicating a range.

[Tasuki]

waveslider, thanks SO much for your lessons and your patience. How about this next one (see attached)? This would seem (to me) to have everything going for it:
1) waves pretty even
2) point 1 in a range
3) point 2 definitley was an attempt to break out of congestion and encouraged buyers who undoubtedly got washed out at point 5
4) point 3 lower than point 1
5) point 5 seems, so far at least, to be bouncing off the 1-3 extension line
6) line 1-4 has multiple touches
7) from a fundamental perspective, the semiconductors were the biggest disappointment in the last rally and they are both oversold and underperforming and definitely ripe for a bounce.

So, whaddya think? Have I got my ducks in a row this time?

[waveslider]

yeah I think you got this one nailed. I'm sure there's other confirmation on that chart too. It looks like a pretty major double top on one hand, but its an expanding pattern, so really it's just going sideways with increasing volatility.
If I were in this trade long I would be careful of volatility dying out - there's a chance this is a major top.
Now you understand the pattern. You can start looking for the nuances. For example, I like to see the bars between the 1 and 3 pts. to be more than the bars between the 3 and 5 pts.
I haven't quantified this, but I think it is preferable..
WW is not perfect, but the more you look at them the more you will see the how and why, and begin to understand the psychology and balance in the pattern..
Glad you are learning. Do you trade futures much? I noticed a pretty nice one in ES today. My chart program is crashing a little right now, maybe will post later..

[Tasuki]

Attached is a five minute chart of today's ES action. There was a semi-OK Wolfe Wave that semi-failed, and I think I know what happened.
Here's my analysis (comments, please):
1) point 1 was within a range
2) point 2 looked like it was going to break out of the range, and sucked in new buyers---notice, however, that it didn't break above the morning's high--it would have made for a stronger pattern if it had.
3) point 3 was lower than point 1, albeit not by as much as I would have liked
4) the line from point 1 to point 4 was a bit steep, methinks.
5) point 5 broke below the line from points 1 to 3, but here's the major weakness of the pattern as it set up--point 5 didn't scare people enough--it held the support line (dotted red line). The pattern would have been much stronger if it had dipped below that support--doubtless lots of traders held on
6) the place to buy would have been the break of the dotted yellow line, and your first target would have been the extension of the line from points 2 to 4 (thin green line). I haven't done a survey yet, but I'm wondering if that line from points 2-4 should maybe always be your first target (take off part of your position?) when trading a Wolfe Wave. Experienced Wolfies, your comments would be appreciated.
7) Ultiimately, the pattern failed to meet its target (the extension of the line from points 1 to 4), but it still went part way. I'm wondering how often my putative first target is hit, and then the price pulls back?