Correct. however Bill Wolfe mentions that a smaller, contrary, Wolfe Wave might give a signal that the larger Wolfe Will not be completed. When using Geo's Off Set rule, here is the likely scenario. I am currently in a short position on CADJPY but will close manually if I see the trade going in the other direction.
Correct a short sell was placed in the zone of the red box. If CAD continues to carve higher highs, I'd look to get out of this trade and let the larger Wolfe complete before getting back into any shorts.