Is the Wolf Wave loss-cut (stop) small? Video available!
Hello!
SATORI here, researching Binary FX.
Today we will examine, “Do Wolfe waves tend to have small stop losses?”
and verify it.
The figure below is an example of Wolfe wave detection on the USD/JPY 1-hour chart.
https://livedoor.blogimg.jp/fxmt4indicator/imgs/c/9/c9fb4dea.gif
In the above image, it is easier to understand when you supplement the green waves,
the upper side connects almost in a straight line as ①③⑤, forming a wedge-like Wolfe wave that narrows from ① to ⑤.
I think you can see that Wolfe waves are formed.
What the indicator detected is the Wolfe wave waveforms from ① to ⑤ in blue.
Instead of entering a sell immediately, it would be safer to wait for the level where the sell-entry horizontal line intersects with the trendline.
If one were to enter a short at the level of the sell-entry horizontal line, the stop loss would be about 15 pips, and
take profit would be 33 pips by Wolfe wave definition, so the reward-to-risk would be over 2:1,
and from a resistance band perspective, take profits can be set at 20 pips and 50 pips, giving reward-to-risk of 1.5:1 and over 3:1 respectively, making it an advantageous trade.
Incidentally, in Wolfe wave definitions, take-profit targets lie on the extension of ① and ④.
This is just one example, but it’s good to say that, “When entering with Wolfe waves, stop losses tend to be small.”
It seems reasonable to conclude this.
The indicators used today are as follows.
This is a YouTube introduction video.
https://youtu.be/Jwdf1ZfIjxU
Thank you very much for reading up to here today.
Email: info at mark canary2.net
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