You Should Watch this Wolfe Wave

I just noticed this …

I used to trade Wolfe Waves with another trader out of Mon­tana.  I took Bill Wolfe’s course and worked on this trad­ing method dili­gently.  In fact, it was trad­ing Wolfe Waves that got me deep into Wyckoff’s work.  At the 5-point in a Wolfe Wave, there was often high vol­ume that seemed to turn the mar­ket.  Being a novice in vol­ume, I couldn’t under­stand why high vol­ume at the top of the Wolfe Wave would be bear­ish.  Thus started my Wyck­off journey …


Daily Wolfe Wave to 1237
This is a clas­sic Wolfe Wave on the daily ES chart.  Wolfe Waves are formed by a spe­cific, five wave sequence.  I’ve high­lighted the key waves here.  This one has all the char­ac­ter­is­tices of a valid Wolfe Wave.

The 1–4 points serve as a pro­jec­tion of the dis­tance a trader can expect the Wolfe Wave to travel.  The 1–4 line shows this.  This 1–4 line also has cer­tain char­ac­ter­is­tics that are not always present and that indi­cate a par­tic­u­larly strong like­li­hood of meet­ing, if not exceed­ing the projection.

Wolfe Waves can be uncanny in their abil­ity to high­light turns in the mar­ket and in their pro­jec­tions.  Like all trad­ing, they are not mechan­i­cal and there are sev­eral char­ac­ter­is­tics and nuances which must be mas­tered to trade well.  Nonethe­less, it will be fun to watch this one.  The Wolfe Wave is totally unre­lated to Wyckoff’s Wave.