I already wrote a long explanation about this pattern but it somehow disappeared.
Short version:
I'm monitoring $VET and noticing price suppression, expecting a bounce from the green box in the chart.
Yesterdays price action however reminded me of the Wolfe Pattern. It was forming a falling wedge but the dump yesterday made a move outside of the pattern which reminded me of the Wolfe Pattern.
I drew the Wolfe Pattern in the chart, with the Estimated Price Arrival which shows a quick +35% WHEN this pattern plays out.
You can trade Wolfe Pattern on the bounce or the break out and I would certainly wait for the break out in this case. As said before: strong price suppression in VET so it has a big chance of invalidating this pattern and going down more. Waiting for the break out is more safe in this case.
Wolfe Pattern explained: www.investopedia.com...rading/05/040405.asp
Short version:
I'm monitoring $VET and noticing price suppression, expecting a bounce from the green box in the chart.
Yesterdays price action however reminded me of the Wolfe Pattern. It was forming a falling wedge but the dump yesterday made a move outside of the pattern which reminded me of the Wolfe Pattern.
I drew the Wolfe Pattern in the chart, with the Estimated Price Arrival which shows a quick +35% WHEN this pattern plays out.
You can trade Wolfe Pattern on the bounce or the break out and I would certainly wait for the break out in this case. As said before: strong price suppression in VET so it has a big chance of invalidating this pattern and going down more. Waiting for the break out is more safe in this case.
Wolfe Pattern explained: www.investopedia.com...rading/05/040405.asp