There is no doubt that Wave Wolfe trading application is one of the most commonly sorts after online forex software. In comparison to other systems in the market, you do not need to install multiple applications so as to determine the best entry and exit points.
However, the key to successfully utilizing the application is learning how to interpret the different 5-point waves used in the application. Discussed herein, is a manual trading approach when using the Wave Wolfe trading system:
Bullish Wolfe Wave Pattern
The following are tips on how to identify a bullish trading pattern when using the Wave Wolfe trading system:
Wave 2 appears at the apex of the chart.
Wave 3 is basically the base of the initial decline immediately after wave 2.
Wave 1 appears just below wave 2 but slightly above wave 3. Point 3 is usually lower compared to point 1 in a bullish trade.
Wave 4 appears just above wave 3. In a bullish trade, point 4 has to be slightly higher than wave 1.
When tracing a trend line in a bullish pattern, the line is traced from point 1 all the way to point 3. Wave 5 is the extension of the trend line and is projected to the estimated reversal point (i.e. point 5). Wave 5 is regarded as the entry level.
The cost aim of this kind of configuration is to create a trend a line which is traced from point 1 to point 4.
The first break is put just under the freshly created reversal point (i.e. point 5). This can then easily be moved to the break-even point.
What You Need To Know In a Bullish Wolfe Wave Trade
As a trader, you cannot start searching for the Wolfe Wave unless the four points (i.e. 1, 2, 3 and 4) are created.
The Wave Wolfe online trading system comprises of swing trading tactics. This online trading system was built by Bill Wolfe who is well-known for successfully earning a living while trading the S&P. Wolfe Wave is unique given that it utilizes a mechanism of unearthing channeling marketplaces that are not showing inequalities. In addition, the system functions by adding the waves with an aim of determining the most suitable entry points.
With Wolfe Wave trading indicators, you do not need to install several indicators. One of the demerits of installing multiple indicators is that you end up having indicators that provide the same information.