I have to point out that to use this tool in practice, you will need a certain skill. in the trading retrospective, making sure they work. Get free access to a Forex demo account without registering on an easy-to-use platform GO TO DEMO ACCOUNT Wolfe Waves Trading Strategy In my previous article we learned how to find Wolfe waves on charts, now it's time to get the pattern to work for us. Any trading system includes four elements: entry, placing the protective stop order, identifying the target and controlling the position. In this case, the opening of longs for the bullish model or shorts for the bearish one occurs within the test or peak strategy described above.
Let me remind you that the first system tries to catch falling daggers, the second takes a more cautious approach. The evidence-based entry in the Wolfe Waves case is the use of the sweet zone described by the author . It is constructed by transferring Peru Mobile Number List line 2-4 to point 3. The resulting triangle is a place for traders' creativity. A position can be opened at the time of the return of quotes within the limits of the traded pattern. In the example with GBP/USD the buy order is placed at the resistance breakout level in the form of line 1-3, the stop order is placed at the low of the bar at point 5. One should not forget that For testing, protective stop orders are narrow, and entry into the position can be made several times in a row while the stop signal works.
LiteFinance: Wolfe Waves Wolfe Waves Device. Characteristics of Wolfe waves. Wolfe Wave Signals | Litefinance Trading on the peaks implies additional signals confirming the reversal . This can be the head and shoulders pattern (or any other counter-trend trading pattern), as in the case of GBP/USD , or the breakout of trend lines acting as diagonal resistances or supports. The departure of the quotes of the currency pair outside the trading channel is in itself a serious signal, and together with the Wolfe wave pattern it is a good reason for the formation of positions. The protective stop order in the first case (pattern combination) is placed below the low of the bar at point 5, in the second (pattern combination and trend lines) in the minimum correction area.