The Theory of the Wolfe Wave :
The theory of my Wave structure is based on a law of physics that for every action there is an
equal and opposite reaction.
This action/reaction often shows a definite rhythm with extremely valuable projecting
capabilities to the trained eye. Many times however, little waves mix with larger waves and the
waters become muddied. Sometimes everything is in synch and you will get a rogue wave effect
similar to what occurs in the oceans of the world. These can be extremely profitable in the
futures and stock market.
On the following two pages, you will find the rules and the theoretical, bullish and bearish
Wolfe Wave structures.
Rules for Bullish Wolfe Wave Structure :
Please not the odd sequence in counting, as you will see, it is necessary for the inductive
analysis. By starting with a top we are assured of beginning our count on a new wave. The 2
point is a top. The 3 point is the bottom of the first decline. The 1 point is the bottom prior to
point 2 (top), that 3 has surpassed.
The 4 point is the top of the rally after point 3. The 5 point is the bottom after point 4 and is
likely to exceed the extended trend line of 1 to 3. This is the entry point for a ride to the EPA
line (1 to 4).
Estimated Price at Arrival (EPA) is trend line of 1 to 4 at apex of extended trend line of 1
to 3 and extended trend line of 2 to 4. Estimated Time of Arrival (ETA) is apex of extended
trend line of 1 to 3 and 2 to
4. Trend line of 1 to 3 and trend line of 2 to 4 must converge.
The theory of my Wave structure is based on a law of physics that for every action there is an
equal and opposite reaction.
This action/reaction often shows a definite rhythm with extremely valuable projecting
capabilities to the trained eye. Many times however, little waves mix with larger waves and the
waters become muddied. Sometimes everything is in synch and you will get a rogue wave effect
similar to what occurs in the oceans of the world. These can be extremely profitable in the
futures and stock market.
On the following two pages, you will find the rules and the theoretical, bullish and bearish
Wolfe Wave structures.
Rules for Bullish Wolfe Wave Structure :
Please not the odd sequence in counting, as you will see, it is necessary for the inductive
analysis. By starting with a top we are assured of beginning our count on a new wave. The 2
point is a top. The 3 point is the bottom of the first decline. The 1 point is the bottom prior to
point 2 (top), that 3 has surpassed.
The 4 point is the top of the rally after point 3. The 5 point is the bottom after point 4 and is
likely to exceed the extended trend line of 1 to 3. This is the entry point for a ride to the EPA
line (1 to 4).
Estimated Price at Arrival (EPA) is trend line of 1 to 4 at apex of extended trend line of 1
to 3 and extended trend line of 2 to 4. Estimated Time of Arrival (ETA) is apex of extended
trend line of 1 to 3 and 2 to
4. Trend line of 1 to 3 and trend line of 2 to 4 must converge.