Dow Wolfewave

[rossored]

Have just gotten used to spotting Wolfewaves, and of course, spotted this one after it had performed...

Do many people use Wolfewaves and are they as reliable as I hear? Another trader on here has very kindly lent me a book which covers them in some detail and I was flabbergasted to see this today...assuming I've interpreted it correctly.

Any comments welcome.

 

[Skimbleshanks]

I used to use them a lot, but not so much now as I've moved away from the 1 min chart, and into 5 and 10 mins.

Out of interest, what is the title of the book which mentions them? I hadn't realised that they were covered in a book.

 

[rossored]

It's in Linda Bradford-Raschke's "Street Smarts". Only a small chapter, but covered in sufficient detail for me to spot this one about two minutes after opening the chart today.

That pic is taken from a 15min chart, incidentally - did you find it worked just as well on short timescales Skim, or are they predominantly a longer timescale pattern?

 

[Skimbleshanks]

I found them very good on the 1 min Dow charts - but, as with everything, they work best in hindsight :cheesy:

I would often have umpteen wwaves on the chart, and the chart became cluttered. Sometimes I would use them to work out targets, but now I have no cluttered charts, and just trade what I see happening, without any expectation or thoughts, and this has proved a much more profitable way to trade.

There are lots of fun things you can do with wwaves - for example, if you draw a trendline from the top of pt 2 on your chart to the top of pt 4 and extend it to the right. And then put a horizontal line from the base of pt 3. And look where they meet - spooky or what!? Therefore you can use them to find rocket trades, which are always lovely to trade. But, as always, it takes time and practice to train your eye to spot them.

 

[rossored]

Thanks Skim. Your input, as always is invaluable.

Do you mean the hindsight thing as in regarding where the target actually was? Or spotting the things in time to react to them?

 

[Skimbleshanks]

I meant the targets. On the 1 min Dow I would invariably end up with 4 or 5 wwaves over a couple of days, each with their own target. And one of them would always be virtually spot on. But in the end it was just too distracting figuring out which one was the 'best'. But I do occasionally use them on EOD bars.

I do believe you're the only one here to have ever mentioned wwaves

 

[rossored]

Am I? Crikey! (cue mailbox full of other traders claiming otherwise... :cheesy: )

Anyway, thanks for your help/thoughts etc Skim.

Cheers,

 

[dsmodi]

there was an online session about wolfewaves - 'sponsored' by T2W well over a year ago.... so it was discussed then as well..can't remember details, but others may. Have a vague recollection that chartman tried implementing it in one of his DOW analysis....

 

[rossored]

B*gger.

And I thought I was going to be famous for something, finally. Or should that be notorious?

 

[Skimbleshanks]

You are famous Rossored - no-one apart from you has mentioned wwaves on this BB.

Ages ago I mentioned what I had discovered about wwaves to Chartman when I was over his way - and he subsequently based one of his lectures in the chatroom on that material, which was actually very basic. Since then I've taken them a lot further and discovered other things (as I showed you above). There's a lot to them, all based on cyclical and wave movements. Anything to do with price waves just fascinates me, and I'm doing some research at the moment on another wave-based theory, which is quite stunning.

And then you brought up the subject - so well done, and you have fame at last. And a vote. :cheesy:

Skim

P.S.
You'll always be famous to me - when you first used your nick I thought it was rossored, not Rosso Red. You know ... Roger, rogered, Ross, rossored. I just couldn't believe how silly I had been. :cheesy:

 

[dsmodi]

aha! that all rings a bell!

precisely what skim mentioned, is precisely what i was talking about.

How about a write - up on the "wolfies" skim?

 

[theknifemac]

You can also have a look at http://www.wolfewave.com/ for some further info written by Bill and Brian Wolfe.

And pay $3000 for the manual ! But seriously there is some info on the basics there. Have also googled some references to Sheep Waves but all the links were to member only pages. I guess sheep waves are in a bear market !

Cheers

TKM

 

[ford]

Missed this baby today..

 

[rossored]

Nice one fordy

 

[micromike]

Rossored your Wolfe Wave indicating a reversal is further confirmed when using candlestick chart analysis. That this is a reversal is backed-up by the lowest candle and the the candle following,

The lowest candle which I think you can just get away with being called a hammer (the stem must be a least 2 times that of the open to close body and there should be little or no stem above the body ). Some might consider the stem above the body just a wee bit too long. However, hammers like this are very common and seem reasonably reliable. It is then confirmed by the white engulfing candle. When confirmed this becomes a very powerful reversal signal and shows that the up-trend is established.

I fully realise that is quite apparent to a lot of you but as it is I feel one of the most useful of patterns amonst others of course I hasten to add and should be of interest to anyone new to this game.

Do any of you use candlesticks patterns in your trading or do you find them too unreliable ?

Anyhow I'm glad to hear that you are now famous Rossored. Does this now make you now rich and famous ?

Anyhow, got to go as there is a wolf in the swimming pool making waves. Sorry it's that damn fox again.

 

[rossored]

Nice one, Micromike, I hadn't even spotted the hammer/engulfing pattern until you mentioned it, which probably answers your other question ref do I use candlesticks... :cheesy: I'm trying to pick them up as I go along as I'm still fairly new at the trading game, but it's good of you to point them out, thanks.

Sadly, being famous (notorious?) does not give me limitless wealth, but I am open to all contributions. Send your donations to.....

Hope you got the fox. I'm still trying to land mine, she's a bit slippery when she gets out of the pool, and I dont think the baby oil helps much.

 

[dsmodi]

ford: any chance you can explain what your chart is saying?

micromike: any chance you can include a chart to explain what you are explaining

 

[barjon]

micromike

yes - I use candlesticks.

the ones that seem to work best for me are shooting star(ish) and hammer(ish), particularly when co-inciding with resistance/support/trend/retracement lines with a healthy bit of volume thrown in for good measure.

if you'll excuse the grandmother and eggs flavour I'd add that in candlestick terms a reversal means merely a halting of the previous trend. Usually need a bit more action to confirm a full reversal to avoid diving into a sideways move.

good trading

jon

 

[ChartMan]

Yes, I did play with WW's after I had a quick enlightenment lesson from Skim and they were excellent. Trouble is my addled brian had difficulty in recognising them so I gave it a miss. Maybe you should re-establish the facts and do some more work on them Rosso? I think there is some good mileage in them.

 

[rossored]

Sounds good CM - maybe Fordy can lend a hand as I know he's been getting well versed on them too?

I've got a couple of things I can probably publish on here which might be helpful to others, I'll have a look a bit later and see about bashing something out, maybe some historical examples of those that made it and those that failed, something like that.