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Wolfe Wave

Wolfe Pattern + AB=CD Reversal ZoneTaking note of a few items on the ETH/BTC chart. After the SEC Binance and Coinbase legal complaint there has been a noticeable drop of in ETH/BTC's performance. This deviation from the trendline might mark a shift in the trajectory for eth for a while. OR, it was a fake-out, and can be seen as such. On a higher timeframe the chart has been correcting. If elliott waves can be counted, perhaps this is near the end of a corrective wave 2. There are noticeable pivots to identify a rather clean 0.618 AB = CD. I've also indicated the path/plan for a wolfe pattern trade setup. Worst case scenario might result in eth revisiting lows near 0.04 BTC, to complete a higher time frame Gartley pattern.
Long
by wildhood
DXY to crash soon?Please read entire description! Bearish Wolfe waves forming inside an ascending wedge on the daily timeframe charts of the dollar currency index. We have entered the monthly resistance band of the ascending parallel channel on the monthly charts and we have reached the top of a channel that we have been trading inside on the daily chart. We are approaching the top formed right before the "dotcom" bubble burst causing all markets to crash (late 90's - early 00's) as well. I think a decent correction is overdue especially with The Federal Reserve hiking interest rates steadily and with CPI (and inflation rates) reaching high numbers that haven't been seen for over 40 years. I don't think is it really possible to pinpoint the top for this run but we are certainly getting closer imo. We could start the downtrend from the top of the daily channel, monthly channel, or reach all the way to the top of the dotcom crash (which relatively isn't too far away). -- Monthly chart channel (resistance band marked in red): Daily chart channel: The bigger picture (daily support levels marked in teal): -- Thoughts and opinions appreciated.
TVC:DXYShort
by xcitedDelirium
Decoding Wedge PatternsThere is a strong bias about chart patterns and their interpretation in the technical analysis space. It is a very common belief that a rising wedge forms bearish sentiment and a falling wedge forms bullish sentiment. Is that really true and how much we can rely on such bias? In order to understand this, we need to dig a little bit about how such concepts could have come into the picture. The best I could get on the internet is an article from Investopedia that explains few technical reasons and constraints of using these patterns. Through the Lens of Diagonal Waves But, when I was studying the concepts of waves, this is what I found from one of the sources I referred to about diagonal waves: ewtaf.com Details are summarised and explained in the below diagram The summary here is, Diagonal waves of contracting types are the same as that of Contracting Wedge patterns. And the diagonal waves of Expanding types represent expanding wedge chart patterns. Diagonal Waves can appear as sub-waves in multiple parts of the entire Elliott Wave. And here are our scenarios Leading Diagonals Leading diagonals are diagonal waves that can appear towards the start of a trend. This can be Wave 1 of an Impulse Wave - This is the start of a new trend. Avoid trading these wedges as they can be short pullbacks. Or better look for pullback and trading opportunities in the direction of the wedge. Wave A of a Zigzag Wave - This can lead to a possible bull trap or bear trap. The corrective wave is likely to continue after a small pullback Ending Diagonals Both expanding and contracting types can be ending diagonals. Can appear as Wave 5 of an Impulse Wave - Meaning the trend is coming towards possible exhaustion. Wave C of zigzag or flat - Correction or pullback is coming to an end and the trend is likely to continue Wolfe Wave Wolfe wave is a rule built on top of wedge patterns to identify time-bound targets. The idea of generating targets and stops based on the Wolfe Wave is as shown below:  Further, here are a few indicators developed in Pinescript that can help do them automatically. Wolfe Scanner Wolfe Strategy Takeaways Here are a few things we learnt from our study. When you are looking for wedge patterns on the chart, look for wedge formations created by 5 pivots. You can learn more about this from this post Fitting Patterns To Your Bias? Before trading a wedge pattern, try to identify if the pattern fits in a bigger scheme of things. Check if they are towards the end/start of a trend or pullback Concepts such as Wolfe Wave can help setup rules for trading wedge patterns for pullbacks.
Education
by Trendoscope
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