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EURUSD 1W WOLFE WAVE STRATEGY - Rising Wedge is a Bearish Bias

OANDA:EURUSD   Euro / U.S. Dollar
When trading the best wolfe strategy you will find that after the entry is triggered your position should show you an immediate profit. This is because the reversal pattern that emerges from the wolfe wave chart pattern is very violent.

Once we’ve got the first five waves we have the general setup of the wolf wave . After the last wave has broken above the ascending wedge channel it’s the time to get ready for some action.

Step #1: Prior to the Bearish Wolfe Wave Formation look to have a clear Bullish Trend .
Firstly, before the first wave to develop we need to have a clear trend that needs to be reversed. For high probability trades, we want to see a prior bullrish trend before the bearish wolfe wave develops.
This step is quite essential if you want to correctly trade the wolfe pattern.
Now that we’ve identified a trend, it's time to apply the wolfe wave rules to the price chart. This brings us to the next step of our reversal strategy.

Step #2: Try finding a 5 wave move that can be contained in a channel. The last wave 5 must break above the wedge channel.
A valid wolfe wave is composed of 5 waves that follow some simple rules. However, the most important rules are that wave 2 and 4 must be contained within the channel created by Wave 1 and Wave 2.
Secondly, wave 5 breaks above the trendline created by wave 1 and wave 3.

Step #3: Sell after we break above and then a candle close back inside the Wedge Price Channel .
At the moment when the price enters and closes back into the price channel , we want to enter a short position. We like to wait for the close inside in order to eliminate possible fake breakouts.
Note*: If we don’t get a close back into the wedge price channel we don’t have a valid trade signal.
Another sign to look for is how quickly it goes back into the channel. We prefer to only trade the wolfe patterns that retrace very quickly back into the range.
This is a sign that a smart money reversal is at work.
Remember, in trading, you only want to trade the high probability trade setups.

Step #4: Draw a trendline that connects the wave 1 high and wave 4 low and extend it in the future. Take profit when the EPA line is hit or candle close below it..
The line that connects the wave 1 high and wave 4 low is called the wolfe wave EPA line.
The EPA line stands for Estimated Price at Arrival and it’s an effective take profit strategy. The EPA line main purpose is to show at what price the market will extend after it reversed the previous trend.
Note*: If the EPA line is too steep, often time it means that the price will never reach it. In this case, you want to take profits early.

Step #5: Hide Protective Stop Loss above Wave 5.
The protective stop loss can be located above the last wave or wave 5. This strategy gives us a very tight stop loss which is good for our risk management strategy.
Obviously that a break above wave 5 means we also break first above the channel and this will invalidate the validity of the wolfe wave chart pattern.
Note** the above was an example of a SELL trade using the best wolfe wave strategy. Use the same rules for a BUY trade.
Conclusion - Best Wolfe Wave Strategy
The wolfe wave strategy is a trading strategy built around waves the same like Elliott Wave trading. We use other trading concepts like channeling and price symmetry to find the best possible trade signals.
If the trade works in our favor then we have a really good chance to have a good trade in terms of risk to reward ratio. With trading experience, it will become much easier to spot the wolfe wave patterns.
I like your analysis and strategy. I wish I could know that level
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