CADJPY - Wolfe Target Hit Dead-On
Hello traders,
On January 07th, we introduced the Wolfe Waves pattern ("WW") as one few pattern 4xQuad considers worth trading (among other more traditional ones), simply because very few pattern have the ability to maintain a reliable forecast in terms of exacting the area of reversal or target.
In the case of the WW, the 1-4 line is the target, and while any numbers of scenarios can happen once Point-5 (or Point-5') is defined, the one scenario to count on is that where price will eventually hit the 1-4 Line.
In our explanation, we had hoped to offer the late comer the possibility that a price reaction would return to higher levels, up to the underside of the 2-4 Line, but it did not, and instead, it move along its most direct "Point-5 to Line 1-4" trajectory.
I will close this chart analysis with the recommendation that traders should consider the following known patterns, because they have been quite good to us - any other pattern is simply not delivering the good, as far as we are concerned, but many other site will tout otherwise, and some others will have more or less reliable percentage of success. Even on this so called "success percent", one has to question what is counted as success: Is a completion of a pattern at point D a success consideration, or is it its ability to reliably deliver the pips to 38.2, 50.0 and 61.8 Fib levels - We at 4xQuad left that conundrum behind a long time ago, as we discovered our own set of patterns and ways of trading. But for the Junior trader and traditional traders interested in pattern trading, beware: The number one complaint among our students is that they have not been able to grow their account on standard use of patterns.
In any case, here are the patterns we like, in order of preference:
1 - Shark
2 - 5-0 (which follows the Shark's evolution)
3 - Bat
4 -Butterfly (but stick to its 1.414 extension only).
Hope this Wolfe Waves pattern and our comments have stirred some of you to look into it closer.
Cheers,
David Alcindor | 4xQuad.com
On January 07th, we introduced the Wolfe Waves pattern ("WW") as one few pattern 4xQuad considers worth trading (among other more traditional ones), simply because very few pattern have the ability to maintain a reliable forecast in terms of exacting the area of reversal or target.
In the case of the WW, the 1-4 line is the target, and while any numbers of scenarios can happen once Point-5 (or Point-5') is defined, the one scenario to count on is that where price will eventually hit the 1-4 Line.
In our explanation, we had hoped to offer the late comer the possibility that a price reaction would return to higher levels, up to the underside of the 2-4 Line, but it did not, and instead, it move along its most direct "Point-5 to Line 1-4" trajectory.
I will close this chart analysis with the recommendation that traders should consider the following known patterns, because they have been quite good to us - any other pattern is simply not delivering the good, as far as we are concerned, but many other site will tout otherwise, and some others will have more or less reliable percentage of success. Even on this so called "success percent", one has to question what is counted as success: Is a completion of a pattern at point D a success consideration, or is it its ability to reliably deliver the pips to 38.2, 50.0 and 61.8 Fib levels - We at 4xQuad left that conundrum behind a long time ago, as we discovered our own set of patterns and ways of trading. But for the Junior trader and traditional traders interested in pattern trading, beware: The number one complaint among our students is that they have not been able to grow their account on standard use of patterns.
In any case, here are the patterns we like, in order of preference:
1 - Shark
2 - 5-0 (which follows the Shark's evolution)
3 - Bat
4 -Butterfly (but stick to its 1.414 extension only).
Hope this Wolfe Waves pattern and our comments have stirred some of you to look into it closer.
Cheers,
David Alcindor | 4xQuad.com