RE: [RT] Wolfe Waves / Question

["EAdamy" <eadamy@xxxxxxxxxxxx>]

Bob, agree on both counts.

 

I think WW's are uncommon because a rising wedge is a terminal pattern although they can occur in any timeframe. While WW's (and/or rising/falling wedges) may not indicate the top or bottom, those which are well-formed seem to be pretty reliable in indicating a top or bottom, especially when combined with other tools to locate points of support and resistance.

 

Although not a WW, the weekly chart since 2004 has displayed a rising wedge pattern with a number of downside breaks and recoveries. Although it has yet to break decisively, I think there is an important message there ... the market is in a terminal advance and the length of the rally from the 2003 low + the rising wedge pattern suggests to me that the correction will also be quite long.

 

Earl

 

-----Original Message-----
From: realtraders@xxxxxxxxxxxxxxx [mailto:realtraders@xxxxxxxxxxxxxxx]On Behalf Of Robert Pardo MS
Sent: Tuesday, September 12, 2006 11:57 AM
To: realtraders@xxxxxxxxxxxxxxx
Subject: RE: [RT] Wolfe Waves / Question

I saw the Wolfe Wave described in some written material some years ago and was mildly intrigued by it then.

After just looking at a handful of charts daily and interday, I remembered what I discovered then, that, at least to a cursory inspection, WW setups are relatively rare. 

Has this been your experience?

I also recall that WW’s do not forecast every top or bottom.  Has this been your experience also?

Thanks.

Regards,

Bob Pardo

Pardo Capital Limited

365 Ridge Road

Kenilworth, Illinois 60043

847-853-9206

rep@xxxxxxxxxxxxxcom

---

From: realtraders@yahoogroups.com [mailto:realtraders@yahoogroups.com] On Behalf Of ketayun
Sent: Tuesday, September 12, 2006 10:29 AM
To: realtraders@yahoogroups.com
Subject: Re: [RT] Wolfe Waves

Thanks very much.

----- Original Message -----

From: EAdamy

To: realtraders@yahoogroups.com

Sent: Tuesday, September 12, 2006 11:11 AM

Subject: RE: [RT] Wolfe Waves

This is a tale of two Wolfe Waves. All charts are 15 minute. Upper left is ES ... note the slope of the upper line which is so shallow that it fails to catch the really significant reversal retracements at 162% and 200% ... it will clearly have to exceed the upper line by quite a bit to reach the 1320 potential reversal area. Lower left is NQ ... note the slope of the upper line which is steep enough to catch the significant reversal retracement area around 1624 without a huge run above the upper line. On the right we have AD volume oscillators which are running overwhelmingly bullish. In my view, the NQ WW is far more likely to work.

Conclusion ... I believe it is important to have a fairly steep upper line in order for the WW to hit the extreme retracement zone required to offer a low-risk reversal. Let's see how it works out.

Earl

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