LESSON - Wolfe Pattern: $CADJPY (#CADJPY #CAD #JPY #CAD
LESSON - Wolfe Pattern In Progress: $CADJPY (#CADJPY #CAD #JPY #Forex)
Link to original chart and technical analysis: on.fb.me/1cWi5Gl
4xQ'ers,
There are very few patterns we heed besides our own proprietary Great White, Janus and Euclid, ... and that of Mr. Wolfe's own, called Wolfe Waves Pattern (or "Wolfe Pattern" in short).
The Wolfe Pattern has very well defined points, and while there is one ideal morphology, many more have produced as many alternative shapes as there are polemics about it.
In its ideal format, the general rule is that it creates a counter-trending wedge, in the sense that a downward-pointing wedge will see price RISE from point 5, and inversely, a upward-pointing wedge will see price decline from point 5.
The genesis of the Wolfe Pattern in the price field can lead many traders to lose it, because there are "prime" and "second" positions for point 5 as well, respectively denoted as 5' and 5".
A prime position is nothing more than the point at which price validates the transposition of line 2-4 originating from point 3.
Ideally, lines 2-4 and 1-3-5 are convergent, and line 2-4, if cut and paste from point 3 can and should point out to the level at which height price would reach, if and when it crosses beyond the 1-3-5 line.
Additionally, a second position (i.e.: point 5") would have the same cut/paste requirement as 5', but its origine would be placed at point 1. This 5" is much rarer an occurrence, but when 5' is transected and price adversely excurses beyond point 5', then seek a high-probability reversal from that 2-4 line transposition from its point 1 origin, whereby a 5" would occur.
The relevance of points 5, 5' and 5" are that they generate the exact point of departure from which price would move and migrate to validate line 1-4.
Best is to take a look at the chart included so that all these lines, points and geometries can truly be appreciated.
Again, 4xQuad rarely trades from price action alone, but there are a few exceptions, such as our own proprietary patterns, and that one astute Wolfe Waves Pattern. Google it.
Cheers,
David Alcindor | 4xQuad.com
Link to original chart and technical analysis: on.fb.me/1cWi5Gl
Link to original chart and technical analysis: on.fb.me/1cWi5Gl
4xQ'ers,
There are very few patterns we heed besides our own proprietary Great White, Janus and Euclid, ... and that of Mr. Wolfe's own, called Wolfe Waves Pattern (or "Wolfe Pattern" in short).
The Wolfe Pattern has very well defined points, and while there is one ideal morphology, many more have produced as many alternative shapes as there are polemics about it.
In its ideal format, the general rule is that it creates a counter-trending wedge, in the sense that a downward-pointing wedge will see price RISE from point 5, and inversely, a upward-pointing wedge will see price decline from point 5.
The genesis of the Wolfe Pattern in the price field can lead many traders to lose it, because there are "prime" and "second" positions for point 5 as well, respectively denoted as 5' and 5".
A prime position is nothing more than the point at which price validates the transposition of line 2-4 originating from point 3.
Ideally, lines 2-4 and 1-3-5 are convergent, and line 2-4, if cut and paste from point 3 can and should point out to the level at which height price would reach, if and when it crosses beyond the 1-3-5 line.
Additionally, a second position (i.e.: point 5") would have the same cut/paste requirement as 5', but its origine would be placed at point 1. This 5" is much rarer an occurrence, but when 5' is transected and price adversely excurses beyond point 5', then seek a high-probability reversal from that 2-4 line transposition from its point 1 origin, whereby a 5" would occur.
The relevance of points 5, 5' and 5" are that they generate the exact point of departure from which price would move and migrate to validate line 1-4.
Best is to take a look at the chart included so that all these lines, points and geometries can truly be appreciated.
Again, 4xQuad rarely trades from price action alone, but there are a few exceptions, such as our own proprietary patterns, and that one astute Wolfe Waves Pattern. Google it.
Cheers,
David Alcindor | 4xQuad.com
Link to original chart and technical analysis: on.fb.me/1cWi5Gl