I yet have not been interested in wolfe waves very much, because I have not found a
way to define them automatically. Recognizing them, by my own eye, is not very easy to me.
Therefore it is very kind of you to share your pattern recognition abilities.
Do you use a automatic scanner to help you find those waves (e.g. the one available for amibroker) or are you scanning them by looking at a chart one by one ?
Which symbols are you scanning do you have criteria for them, maybe a certain amount of
volatility average cash value per day ?
The following user says Thank You to FB2012 for this post:
This is one of the most common question asked to me when I train the traders. The answer is YES but NO!
Let me put this in an easy way. When I started trading WW , I had the same problem of identifying the points....filtering the trades, identifying the right volume and at one point of time I was even forcing the waves to look like WW....LOL! I still remember those days . I was running after the holy grail of identifying the WW found some but they are not worth chasing.............so I stopped and looked back and was astonished to notice that manual recognition of waves is more easy and promising than the indicators.......They don't work in all scenarios so I quit and trained myself in such a way that I can identify WWs in any instrument, any market, any time frame and believe me once u get it, its lot more easier to do that......................
Here's how I scan them............I go through the end of the day volume and identify the huge volume stocks and mark them and study their price patterns and wait for the confirmation for next few days ( EOD charts) , if volume drops the next few days and I'll find my EL (Entry Level ) and define my exposure SL (Stoploss) and trade them.
Where as SP500, ES or commodities are concerned I do Day trading following 5-min,15min, hourly and what ever the time frame may be even if it is 2-mins. If I feel comfortable with the pattern and my setup rules I trade them irrespective of the time frames and the instruments.............though it depends on the margin I have in my trading accounts................I hope this helps. Thank u
The following 2 users say Thank You to kitesfs for this post: