Is it possible for someone (ShadowWZ perhaps?) to code a WolfeWave indicator? I've just come across this method and it seems interesting. Fukinagashi at MoneyTec has put one together but it got panned at a Russian forum because it was using the ZigZag indicator and missing some elements. I noticed in the Harmonic Trading thread that the wave counter for that is using a_ZZ. Maybe this indicator might work for a Wolfe Wave indicator.
Here's the link to a MoneyTec thread that talks about WolfeWaves in more detail:
http://www.moneytec.com/forums/showt...8&page=1&pp=40
Here's the link to Fukinagashi's indicator:
http://www.moneytec.com/forums/showt...548#post155548
This link is from the Founder's site:
http://www.wolfewave.com/an_illustra..._the_rules.htm
The following are some key things to look for...
Quote:
These are the rules from Street Smarts:
1. Number 2 wave is a top.
2. Number 3 wave is the bottom of a first decline.
3. Number 1 wave is the bottom prior to wave 2 (top). Point 3 must be lower
than point 1.
4. Number 4 wave is the top of wave 3. The wave 4 point should be higher than
the wave 1 bottom.
5. A trend line is drawn from point 1 to point 3. The extension of this line
projects to the anticipated reversal point which we will call wave 5. this is
the entry point for a ride to the epa line (1 to 4).
6. The Estimated Price at Arrival (EPA) is the trend line drawn from points 1
to
4. This projects the anticipated price objective. Our initial stop is placed
just
beneath the newly formed reversal at point 5. It can then be quickly
moved to breakeven.
IMPORTANT POINT: You cannot begin looking for the Wolfe Wave until points
1, 2, 3, and 4 have been formed. Keep in mind that point 3 must be lower than
point 1 for a buy setup. It must be higher than point 1 for a sell setup. Also,
on the best waves point 4 will be higher than point 1 for a buy setup and lower
than 1 for a sell setup. This ensures that absolute runaway market conditions
do not exist.
A) The 1-3 line and the 2-4 line must converge.
B) to help find the point 5 entry area you parrallel the 2-4 line off the 3
point to give a bottom boundary to the entry area.You can even use the 1 point
in extreme cases.
the idea is to take a line that is parallel to the 2-4 line ( the same angle as
the line connecting the point 2 and point 4 ) and draw a line from the point 3
at this same angle.
As the angle is steeper than the 1-3 line it gives you a deeper level for the
point 5 entry.
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samiam
03-13-2006, 07:11 AM
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