This post is my own interpretation of what wolfe wave is by reading other articles on wolfe wave online.
How To Trade A Bullish Wolfe Wave Pattern
Wolfe Wave Analysis Wolfe waves can be bullish or bearish. These two charts below shows the difference between the two.
Falling and rising wedges? You see, a bullish wolfe wave is a variation of the falling wedge chart pattern. And to be considered a wolfe wave, the following rules must be obeyed: Waves must stay within the channel created by Wave equals waves shows symmetry Wave 4 is within the channel created by waves There is regular time between all waves Wave 5 exceeds trendline trading wolfe by waves 1 and 3 and is the entry point If you are really interested in wolfe wave trading, the above 5 rules will really make things very clear on what to do when drawing wolfe waves.
Trading wolfe will also help you eliminate patterns that do not meet this criteria.
So the EPA line main objective is to show where a currency pair will touch that line extended into the future. It stands for Estimated Time on Trading wolfe.
How the Wave Principle Helps You Make Smarter Trades - Jeffrey Kennedy
Ok, in the wolf wave trading scenario, the ETA line is used to estimate at what date price will arrive at the apex of the two converging lines. Remember, on the mt4 chart, the date is on the bottom of the chart. At the very apex where the two converging lines meet, if you look straight down, you see the date in the future that would coincide with the apex where the two converging lines meetright? Do the ETA line work?
Education and research
How To Trade Wolfe Waves Not knowing that a potential bullish or bearish wolfe wave pattern is forming is the main difficulty many traders have with trading wolfe waves.
Part of the problems to is that if you are not aware about it or are not SERIOUSLY looking for it, you are pattern for binary options going to see trading wolfe form on your chart even if you are looking at that chart.
A Wolfe Wave is a chart pattern composed of five wave patterns in price that imply an underlying equilibrium price. Investors who use this system time their trades based upon the resistance and support lines indicated by the pattern. Wolfe Waves.
Because you are looking for something else and not trying to spot wolfe wave patterns forming on your chart. It may take a while because it is not a very easy trading concept to grasp especially if you are a new forex trader.
In order for you to trade wolfe waves: first you have to know how to spot a wolfe wave pattern when its forming and know at what point you have to buy or sell and what point you have to take profit and exit a trade. Trading the bearish wolfe wave pattern is really simple: Point 5 is where you sell.
The Prerequisite of Forming a Wolfe Waves Pattern is the Price Channel
What you do is wait for bearish reversal candlesticks to confirm your analysis and then sell. You will actually have to monitor it and as soon as price hits that EPA line, you take your profit and exit the trade. But, if wolfe wave trading is what you are after, I hope I have provided you a very good rundown of what wolfe wave patterns are, how to spot the patterns and trade them.