Wolfe Waves

BarroMetrics Views: Wolfe Waves

I have received quite a few requests to follow-up on Wolfe Waves. Here is my take. In the free section of my site, I’ll be uploading the material I found on the net.

Figure 1 shows an ideal Bullish Wolfe Wave. It’s a very common pattern and I found that I applied it will-nilly, I’d lose money. I did find that I turned into a profitable pattern if I used it in the proper context. But before I get into ‘context’ let’s look at the essential characteristics of the BullishWolfe Wave.

  1. Wave 5 tends be identified by a trend line that usually originates from waves ‘1’ and ‘3’.
  2. Wave 4 tends be a deep retracement (greater than 61.5 but less than 87.5) of Wave 3.
  3. Wave 4 holds below the high of Wave 2.

OK, let’s turn to context. Here I need to turn to the Ray Wave. I successful Wolfe Wave tends to form as a continuation pattern in the wave 2 or wave 4 position of a 5-wave structure of in the wave b of 3-wave structure. It serves as a reversal pattern in wave 5 (of a 5-wave structure) or wave 5 (in a 3-wave; here best to see in the first lower timeframe).

That’s a quick summary of my context and essential characteristics. On Tuesday, I’ll look at the Wolfe Wave in the current S&P picture.

ww-ideal.png

FIGURE 1:  Ideal Bullish Wolfe Wave

2 thoughts on “Wolfe Waves”

  1. WW is not a pattern in wave 2/b or 4. It is a continuation pattern in wave 1 or A which will be leading diagonals.

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