- Wait for 5min signal candles to confirm
- Trade in the direction of previous day's candle
- Use stochs with discretion, below 80 and above 20.
Friday, January 30, 2009
What is the Wolfe Wave?
Simply put, the Wolfe Wave is a natural rhythm that exists in all markets. It is made up of waves of supply and demand that form their own equilibrium. It was not "invented" by me, but discovered. The key to its accuracy is in properly identifying the 1, 2, 3, 4 & 5 points. These are what give it its proper balance of equilibrium. It is very important to identify the dominant Wave. It is somewhat like recognizing those 3-D pictures. After a while a smile comes to your face and you say: "WOW, I see it."
Thursday, January 29, 2009
Sunday, January 25, 2009
Trading Log - Review
The cup is a saucer-shape consolidation (consolidating rounded double bottom at MS1), and the handle is a short pullback followed by a breakout.
A classic cup and handle pattern as it forms at the pivot point support target MS1.This is the essence of an accumulation period. It tires and bores traders; and as the handle forms, it scare traders into exiting longs or, even worse, going short at support. It is this period of consolidation that creates indecision. Once prices take off, it causes shorts to run like mad for cover.
The height of the cup which is actually around 110 pips is used to determine or predict the minimum upside price objective. The predicted 110 pips upside price objective is also very very near Daily Pivot 1.2998 the next resistance!!
There is a breakout of 1.2885 resistance (cup).
Wait for a Two Period close above resistance to confirm breakout.
Candle 1720 and 1725 has broken resistance but no Force signals so its better to stay out.
Whereas candle 1745 and 1750 is also a Two Period Close above resistance. As you can see the Force signals also confirms the move. Buy at 1755 candle open. Apply rule with Force = high probability!