Friends,
As we are considering the much larger timeframe of this
NZDUSD pair, TradingView iefan posted a potential Wolfe Wave on that thread.
Following is the Wolfe Wave chart, which he correctly constructed:
A slight modification is made using the internal geometric requirements of the "Geo", which yield a very similar geometry, but the rules of engagement ("ROE") call for higher probability targets that what is originally defined in the Wolfe Wave, namely the "Off-Set Rule" - See following chart illustrating the basic internal constrictions:
In its most basic internal construction rule, the Geo prefers the following conditions:
1 - In essence, the "Geo" PREFERS that the 1-2 Leg defines Point-1 retrospectively using the cd segment which terminates at Point-2 to define Point-1 via the use of the reciprocal ab = cd symmetry;
2 - It also prefers that the 2-3 Leg be an Elliott Wave Triple-ZigZag ("TZZ");
3 - It also looks for a simple zig-zag of the 3-4 Leg
In terms of defining Point-5, there are three possibilities:
1 - Point-5 exists along the 1-3 Line;
2 - Point-5-prime (5') exists along transposition of the 2-4 Line originating at Point-3;
and
3 - Point-5-second(5'') exists along transposition of the 2-4 Line originating at Point-1.
Above construction is important, as it leads the the HIGH-PROBABILITY target definition of the rule defines as "Off-Set Rule", which suggests that:
1 - If price rallies from Point-5, it will have a high probability of attaining the 1-4 Line (this is the basic Wolfe Wave rule)
2 - If price rallies from Point-5', it will have the high probability of attaining the price level corresponding to Point-4
and
3 - if price rallies from Point5'', it will have the high probability of attaining the price level corresponding to Point-3.
In terms of entry, the following rules address a grading level of aggressiveness, namely:
1 - An aggressive entry would allow the trader to enter at the moment price validates Point-5';
2 - A standard entry would allow the trader to enter at the NEXT candle-open, following the crossing AND closing across the 1-3 Line;
and
3 - A conservative entry would allow the trader to enter at the NEXT candle-open, following the crossing AND closing across the price level of Point-3
OVERALL, the pair remains bullish. This smaller interval is worth consulting, as it looks at a finer granular level. IF and once price arrives at the target, we would shift our attention to that larger scaled set up.
Thank you iefan for suggesting this great find at this smaller timeframe.
Best,
David Alcindor
Predictive Analysis & Forecasting
Durango, Colorado - USA
-----
Twitter:
4xForecaster
LinkedIn:
David Alcindor
-----
.
As we are considering the much larger timeframe of this
NZDUSD pair, TradingView iefan posted a potential Wolfe Wave on that thread. Following is the Wolfe Wave chart, which he correctly constructed:
A slight modification is made using the internal geometric requirements of the "Geo", which yield a very similar geometry, but the rules of engagement ("ROE") call for higher probability targets that what is originally defined in the Wolfe Wave, namely the "Off-Set Rule" - See following chart illustrating the basic internal constrictions:
In its most basic internal construction rule, the Geo prefers the following conditions:
1 - In essence, the "Geo" PREFERS that the 1-2 Leg defines Point-1 retrospectively using the cd segment which terminates at Point-2 to define Point-1 via the use of the reciprocal ab = cd symmetry;
2 - It also prefers that the 2-3 Leg be an Elliott Wave Triple-ZigZag ("TZZ");
3 - It also looks for a simple zig-zag of the 3-4 Leg
In terms of defining Point-5, there are three possibilities:
1 - Point-5 exists along the 1-3 Line;
2 - Point-5-prime (5') exists along transposition of the 2-4 Line originating at Point-3;
and
3 - Point-5-second(5'') exists along transposition of the 2-4 Line originating at Point-1.
Above construction is important, as it leads the the HIGH-PROBABILITY target definition of the rule defines as "Off-Set Rule", which suggests that:
1 - If price rallies from Point-5, it will have a high probability of attaining the 1-4 Line (this is the basic Wolfe Wave rule)
2 - If price rallies from Point-5', it will have the high probability of attaining the price level corresponding to Point-4
and
3 - if price rallies from Point5'', it will have the high probability of attaining the price level corresponding to Point-3.
In terms of entry, the following rules address a grading level of aggressiveness, namely:
1 - An aggressive entry would allow the trader to enter at the moment price validates Point-5';
2 - A standard entry would allow the trader to enter at the NEXT candle-open, following the crossing AND closing across the 1-3 Line;
and
3 - A conservative entry would allow the trader to enter at the NEXT candle-open, following the crossing AND closing across the price level of Point-3
OVERALL, the pair remains bullish. This smaller interval is worth consulting, as it looks at a finer granular level. IF and once price arrives at the target, we would shift our attention to that larger scaled set up.
Thank you iefan for suggesting this great find at this smaller timeframe.
Best,
David Alcindor
Predictive Analysis & Forecasting
Durango, Colorado - USA
-----
Twitter:
4xForecaster
LinkedIn:
David Alcindor
-----
.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.