Wolfe Wave
Wolfe Wave is a trading strategy that is based on the principle of supply and demand. It is a price action pattern that is used to identify potential reversals in the market. The Wolfe Wave is composed of five waves that move in a specific pattern. The pattern is composed of two impulse waves and three corrective waves. The impulse waves are labeled 1, 3, and 5, while the corrective waves are labeled 2 and 4. The pattern is named after its creator, Bill Wolfe, who developed the strategy in the late 1970s.
History of the Wolfe Wave
The Wolfe Wave was developed by Bill Wolfe in the late 1970s. Wolfe was a successful trader and investor who developed the strategy as a way to identify potential reversals in the market. He believed that the pattern could be used to identify potential turning points in the market. The strategy has since become popular among traders and investors who use it to identify potential reversals in the market.
The Wolfe Wave is based on the principle of supply and demand. It is believed that when the supply and demand of a particular asset are out of balance, the price will eventually move in the direction of the imbalance. The Wolfe Wave is used to identify potential reversals in the market by looking for the five waves that make up the pattern. The pattern is composed of two impulse waves and three corrective waves. The impulse waves are labeled 1, 3, and 5, while the corrective waves are labeled 2 and 4.
Table of Comparisons
| Wave | Price Action |
|---|---|
| 1 | Impulse Wave |
| 2 | Corrective Wave |
| 3 | Impulse Wave |
| 4 | Corrective Wave |
| 5 | Impulse Wave |
Summary
The Wolfe Wave is a trading strategy that is based on the principle of supply and demand. It is a price action pattern that is used to identify potential reversals in the market. The pattern is composed of two impulse waves and three corrective waves. The impulse waves are labeled 1, 3, and 5, while the corrective waves are labeled 2 and 4. The strategy has become popular among traders and investors who use it to identify potential reversals in the market. For more information about the Wolfe Wave, you can visit websites such as Investopedia, TradingView, and StockCharts.
See Also
- Price Action
- Support and Resistance
- Trend Lines
- Fibonacci Retracements
- Elliot Wave Theory
- Gann Theory
- Candlestick Patterns
- Moving Averages
- Bollinger Bands
- Relative Strength Index (RSI)
