wolfewave charts pattern for financial markets

1. WOLFEWAVE CHART PATTERN
Technical analysis

2. Wolfewave chart pattern
Wolfe Wave patterns were first identified by Bill Wolfe and his child, Brian. As indicated
by Wolfe, they happen normally in all trends like trending and non trending. Presently,
the standard way of trading Wolfe Wave is to wait at the 5 wave price development to
finish. Albeit the fundamental Wolfe Wave section rule is straightforward and solid there
are elective techniques that can assist you with having more trade entries.
For market experts with more experience, these bogus breakouts are like the upthrust or
"bull trap" – in case we're discussing a bearish Wolfe Wave. Something contrary to an
upthrust is the spring or "bear trap" – in case we're discussing a bullish Wolfe Wave.
The upthrust and spring are trading ideas utilized in Volume-Price Analysis.

3. Wolfewave chart pattern
 Rules & Structure Of WolfeWave chart Pattern
 The 3 common places where wolfewave can be found are these:
 channels in an uptrend (look for bearish wolfewave)
 and channels in a downtrend (look for bullish wolfewave)
And to be considered a wolfewave, the following rules must be obeyed:
 Waves 3-4 must stay within the channel created by wave 1-2
 Wave 1 and 2 & Waves 3 and 4 which should highlight a perfect symmetry.
 Wave 4 must be within the channel created by waves 1-2
 There is regular time between all waves
 Wave 5 exceeds trendline created by waves 1 and 3 and is the entry point

4. Wolfewave chart pattern
So, here is a clear step by setup guide to conquer this out of the box chart pattern.
Step #1: Before the Bullish Wolf Wave Formation look for a clear Bearish Trend
Right of the bat, before the main wave to foster we really want to have a clear trend that
needs to be reversed. For new trades we need to see an earlier bearish trend before the
bullish wolf wave creates.

5. Wolfewave chart pattern
 Step #2: Try observing a 5 wave move that can be contained in a channel. Last
wave 5 must break below the channel
 You can observe the wolf wave pattern rules few paragraphs above.
 A legitimate wolf wave is made lot of 5 waves that keep some basic guidelines. In any
case, the main guidelines are that wave 2 and 4 must be contained within the channel
made by Wave 1 and Wave 2.
 Besides, wave 5 underneath the trendline made by wave 1 and wave 3

6. Wolfewave chart pattern
 Step #3: Buy after we break and close inside the Price Channel.
 Exactly when the value enters and closes once again into the value channel, we need
to enter a long position. We like to hang tight for the close inside to dispose of possible
fake breakouts.
 Note * If we don’t get a nearby back into the value channel we don’t have a
legitimate trade signal.

7. Wolfewave chart pattern
 Step #4: Draw a trendline that associates the wave 1 low and wave 4 high and
expand it later on. Take benefit when the EPA line is hit.
 The line that associates the wave 1 low and wave 4 high is known as the wolf wave
EPA line.
 The EPA line represents for Estimated Price at Arrival and it’s a powerful take profit
procedure. The EPA line fundamental intention is to show at what value the market will
stretch after it turned the previous trend.

8. Wolfewave chart pattern
 Step #5: Hide Protective Stop Loss underneath Wave 5
 The protective stop loss can be situated below the last wave or wave 5. This technique
gives us an extremely close stoploss which is acceptable for our risk management
procedure.
 Obviously that a break underneath wave 5 means we likewise break first beneath the
channel and this will discredit the legitimacy of the wolfwave chart pattern.

9. THANK YOU