Archive for July, 2011:
Wolfe Wave Indicator
Wolfe Wave Explanation
The Wolfe Wave is a natural pattern found in the forex market. Its basic shape shows a fight for balance, or equilibrium, between supply and demand. This naturally occurring pattern was not invented, but rather discovered as a means to predicting levels of supply and demand.
These patterns are very versatile in terms of time, but they are specific in terms of scope. For instance, Wolfe Waves occur in a wide range of time frames, over minutes or even as long as weeks or months, depending on the channel. On the other hand, the scope can be predicted with amazing accuracy. For this reason, when correctly exploited, Wolfe Waves can be extremely effective.
To identify Wolfe waves, they must have the following characteristics:
Waves 3-4 must stay within the channel created by 1-2
Wave 1-2 equals waves 3-4 (shows symmetry)
Wave 4 is within the channel created by waves 1-2
There is regular time between all waves
Wave 5 exceeds trend line created by waves 1 and 3 and is the entry point
The estimated price is a price along the trend line created by waves 1 and 4
Wolfe Wave Indicators Comparison
We have analyze several Wolfe Wave Metatrader 4 indicators. All Wolfe Wave Metatrader 4 indicators based on ZigZag. BJF Trading Group Wolfe Wave Metatrader 4 Indicator can recognize all Wolfe wave paterns on specified time range. It checks every top for potential 1,2,3,4,5 points not only ZigZag tops.
