What is the Wolfe Wave?
Simply put, the Wolfe Wave is a natural rhythm that exists in all markets. It is made up of waves of supply and demand that form their own equilibrium. The key to its accuracy is in properly identifying the 1, 2, 3, 4 & 5 points.
Rules for Bearish Wolfe Wave
1)The 2 point is a bottom
2)The 3 point is the apex of the first upwave.
3)The 1 point is the apex prior to point 2 (bottom), that 3 has surpassed.
4)The 4 point is the bottom of the rally after point 3.
5)The 5 point is the top 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 Target line (1 to 4).
Another Wolfe Wave Formation in Nifty???
For this condition to be valid Nifty should not move above the
Fibonnaci resistance line 2808 as mentioned in my previous post .