StockFetcher Forums · General Discussion · Why does the WolfeWave work so well?<< >>Post Follow-up
TheRumpledOne
6,358 posts
msg #51983
Ignore TheRumpledOne
6/5/2007 1:59:25 PM

Why does the WolfeWave work so well?

http://www.wolfewave.com/Why_does_the_wolfewave_work_so_well.htm

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Comments anyone?



xray
6 posts
msg #51992
Ignore xray
6/5/2007 8:01:00 PM

Hello,
I researched this system 4-6 yrs ago and I found little info about it....couple of different messages where stating that:
-Bill Wolfe trained his son in this system and they where both promoting and teaching the system (good years ago, 10-15...)
-after some years his son was working as a car salesman...it was unclear if he had trading losses which forced him to get a job, but that was the unspoken idea of the message...
-the system can not be backtested and they are not any traders to contact to verify the tradeability of it...

IMHO Bill has an edge in his system and is confident of using it, but you have to be able to interpret the setup in the same way he does....and I personally can not do it....that does not mean that somebody else can not do it....and my message is in any way intended to discredit the WolfeWave system...

It is more visual based, that is why Bill is using fax lessons, he does sometimes the pattern the old fashion way, drawing lines on the charts by hand,
and for me it was easy to see/find the pattern in hindsight, after the fact, but I didn't put enough time and effort to develop the skills to see it before hand....

Please take it as my 2c and always do your own due diligence... to be on the safe side.
Bellow is what I think will stand the test of time, as the secret to Investing:
Sir John Templeton answer was :
Asset Allocation: 1. 30-50% Income (treasury bills, MITTS,...etc)
30% if you are very young(more risk), 50 even 60% otherwise
2. 70-50% Growth (stocks, options, TA trading,...etc)
70% - young(more risk)
3. Only the Gains from 1 & 2 (if you have them) invest in
DREAMS (risky plays: IPOs, collectibles,...etc) for a
chance of a big hit.
This allocation will protect your overall portfolio from disaster...even if you daytrade or swing trade...etc

Good luck,
xray



jbrtrader
32 posts
msg #51997
Ignore jbrtrader
6/6/2007 12:35:07 AM

Why?Imo these patterns work well when they act in concert like a perfect storm.Fibs,Elliott Wave Diagonals,Gartleys,etc. in other words if there is a WolfeWave there is likely an Elliott pattern in or around it along with a Fib relationship,correctly spotting them is the fun part.

curmudgeon
103 posts
msg #51999
Ignore curmudgeon
6/6/2007 2:02:29 AM

Geometry. About as useless as Gann.

SAFeTRADE
311 posts
msg #52010
Ignore SAFeTRADE
6/6/2007 9:22:29 AM

I think what you have here basically is a stock that:

1. starts out at a 45 degree angle
2. attempts a breakout at the 23 degree angle and fails
3. attempts to cross the 11 degree line and fails
4. drops to the 0 line
5. the buy signal is when it crosses the 6 degree line
6. the sell signal is at the 23 degree line

note: degrees are rounded

My 2 cents worth, an interesting setup

SAFeTRADE
311 posts
msg #52012
Ignore SAFeTRADE
6/6/2007 10:56:49 AM

What if for no other reason then mental gymnastics we try to make a filter to catch these as they happen. Mind you this is a work in progress that may prove unworkable. This then is my attempt. I gave a 45 degree angle a value of 12.5 and a 6 degree angle a value 2.5. We should then be looking for 3 lows at the 6 degree angle with 1 high at the 12.5 degree angle within say a 25 day time period. With that in mind here is my filter to attempt this. I have sorted on column lowx6 descending knowing it will pull up a larger qty just to look them. Ideally we would want to filter lowx6 < 4 and lowx6 > 2, with highx45 < 2 and highx45 > 0. My effort.

Fetcher[
set{6dgr, 2.5}
set{45dgr, 12.5}
set{cls, close}
set{clsval, indposition(cls, 60) * 100}
set{lowval, indposition(low, 60) * 100}
set{highval, indposition(high, 60) * 100}
set{lowx6, count(lowval crossed below 6dgr in the last 1 day,25)}
set{highx45, count(highval crossed above 45dgr in the last 1 day,25)}
add column lowx6
add column highx45

close > 15
volume > 200000


draw 6dgr on plot clsval
draw 45dgr on plot clsval


draw ma(13)
draw ma(26)
draw ma(50)

sort column 5 descending
]






SAFeTRADE
311 posts
msg #52013
Ignore SAFeTRADE
6/6/2007 11:07:17 AM

Revised version. I neglected the 23 degree angle and thats also needs to be a 1 and I incorrectly made the 6 degree angle a value of 2.5 it should be 1.5. So with that in mind here is my revised version. Need to slow my thinking down.

Fetcher[
set{6dgr, 1.5}
set{23dgr, 6.2}
set{45dgr, 12.5}
set{cls, close}
set{clsval, indposition(cls, 60) * 100}
set{lowval, indposition(low, 60) * 100}
set{highval, indposition(high, 60) * 100}
set{lowx6, count(lowval crossed below 6dgr in the last 1 day,25)}
set{highx45, count(highval crossed above 45dgr in the last 1 day,25)}
set{highx23, count(highval crossed above 23dgr in the last 1 day,25)}
add column lowx6
add column highx23
add column highx45

close > 15
volume > 200000


draw 6dgr on plot clsval
draw 23dgr on plot clsval
draw 45dgr on plot clsval


draw ma(13)
draw ma(26)
draw ma(50)

sort column 5 descending
]



heypa
283 posts
msg #52014
Ignore heypa
6/6/2007 11:08:43 AM

Seems to me he is just buying the bounce off the lower leg of a declining converging triangle.I prefer to wait till it clears the triangle if I were bold enough to be contrairian with such a set up.

StockFetcher Forums · General Discussion · Why does the WolfeWave work so well?<< >>Post Follow-up

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