Think of patterns or waves if you will as sound octaves for a moment if you will. If you study a sound wave the sound of particular octaves will peak out at some point in the wave and at which point begins the end of the wave. Wolfwaves are a 5 wave strategy (5th wave peak) that work on the principle that after a 5 count wave is complete there is a chance of a sizable reversal.
As aspiring as these patterns seem they can be dangerous because take in mind unlike a predefined musical sound a market trend is an unknown wave until it's finished and a strategy like this is a reversal strategy that can either get you in a good reversal trade but if you're wrong you end up fighting the trend. For those reasons it's important to get confirmation after the 5th wave has set up because you can get destroyed by fighting a trend that has not ended. But with risk comes rewards too - so if you play your cards right - there's great profit potential.
In the wolf wave ideally 1,3,5 wave points are established with timing intervals between moves. The 4th wave should revisit the price range established by waves 1,2. Wave 5 is often (but not always) a false breakout move beyond the 5 wave pattern which is sometimes compared to a rising or falling wedge. The great thing about the wolfwave is you don't have to have a complex understanding of technical analysis.
The principle of the wolfwave is not subjective - in otherwords if done correctly it would be impossible for different traders to come to different conclusions unlike many elliot wave strategies that work from hindsight. When there is a wolfwave signal it is a mathematically valid signal but take in mind you may be fighting a trend (which could be a greater force) and despite theory it may not always work as intended.
There is a variation that is called the 3 indians setup.
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