You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Wolfe Wave course
- Thread starter newtoet
- Start date
The method is basically intraday pattern setups. If you do a search on Google, you'll find lots of images of the Wolf Wave. Trading these patterns has been around a long time and there's nothing wrong with them. The problem is increased volatility in the markets which makes it very hard to pick efficient entries and exits. You need more than just the pattern. You need to develop efficient entries/exits so that you're not wiped out on every trade. You should ask him whether he has developed an entry/exit system that's reliable.
Quote from JerryAdler:
You should ask him whether he has developed an entry/exit system that's reliable.
That's the bottom line.
You can always find setups that appear to work in hindsight with Wolfe, "Reversal Dynamics," Gann/Elliot stuff, etc. However, I've never seen anyone design 100% mechanical rules (or better yet, just automate them in a trading platform) and prove their worth.
The marketers usually say "it's a great tool but you must add other patterns, indicators, your own discretion, whatever" for buy/sell entries. In other words, there's no evidence that they're profitable. You could probably draw stick figures on your chart and "predict" future highs/lows with as much accuracy.
Quote from MKTrader:
That's the bottom line.
You can always find setups that appear to work in hindsight with Wolfe, "Reversal Dynamics," Gann/Elliot stuff, etc. However, I've never seen anyone design 100% mechanical rules (or better yet, just automate them in a trading platform) and prove their worth.
The marketers usually say "it's a great tool but you must add other patterns, indicators, your own discretion, whatever" for buy/sell entries. In other words, there's no evidence that they're profitable. You could probably draw stick figures on your chart and "predict" future highs/lows with as much accuracy.
That's very true. There's always an ongoing conversation about the randomness of the market, whether there's really an identifiable pattern or whether it's simply stick figures, as you said. My own opinion is that there's so many players in the market that it has to be random. These players are all trading independently with their own view of the market - it's not a coordinated event.
Anyway, just a thought. But as far as Wolf is concerned, studying patterns is never a bad idea. But the key is still to refine an entry/exit strategy which can be backtested objectively.