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Indicators Wolfe wave is an important tool of a trader
Technical analysis tools bill Wolfe was originally developed for the futures market. In the end, the proposed method proved to be more than effective. The universality of his theory allowed with equal success to use it for technical analysis when trading in other markets, including Forex.
This method of analysis is sometimes compared to the popular wave theory of Elliott, some experts believe Wolfe waves more objective. Your method of Woolf is based on the 1st law of Newton, which he adapted to changes of the price chart.
The principle that every action causes a similar reaction, gives an opportunity effectively identify points of market entry and the conditions of closing deals. Note that the market must be high or at least average volatility.
Wolfe waves in Forex market
A method of constructing a Wolfe wave is based on the fact that their lines are formed at the extrema. All calculations are based on the graphic pattern that is called "wedge". For correct interpretation of the theory of Wolff indicators, is building waves in the automatic mode, thereby providing the trader with the recognition procedure.
Wedge pattern in Forex
Wolfe waves in trading systems
Wolfe waves can be used as a primary and as a secondary method of analysis. Quite often this method is combined with:
• the method of Murray;
• the theory of Eliot;
• Fibonacci lines;
• figures candlestick analysis.
Despite the relative simplicity of the waves, bill Wolfe, for effective and profitable trading you need to have a certain set of knowledge and practical skills, as the bulk of the indicators draws have formed the tops of the waves, namely, the prediction is performed based on the theory. Thus, in his work traders use indicators, whose main task is the identification of these waves.
On the Internet you can find both paid and free tools. For training it is recommended to use the first type of indicators Wolfe wave, which include, for example, "WolfeWave-04".
This tool quite successfully finds the corresponding points and builds shapes on price charts. It should be noted that, depending on the modification, this indicator can show only the last one, and all the waves. It is very convenient for visual perception and analysis of the characteristics of graphical figures.
Another example of indicators Wolfe wave is "WolfWave Nen", which was developed on the basis of the analytical tool "ZigZag". Today, traders are available in two versions, differing by the input parameters. After the indicator is loaded on a chart, it begins drawing the latest figure, in this case all vertices are numbered with blue numbers, which you need to choose the template has a light background.
The Nen Wolf Wave indicator for MT4
Note that when using these indicators the final construction of graphic shapes has to be done manually. However, the algorithms help in practice and in real time possible to study the theory of Wolff and to obtain skills for its effective application.
WolfWavesFind indicator, its characteristics and application
The most popular is the indicator WolfWavesFind. This analytical tool is well identificeret graphic shapes Wolfe, as well as draws them on the chart.
Setting indicator trading terminal is the standard platform. WolfWavesFind is supplied with the parameters appropriate to the method of Wolfe and additional adjustment is not needed.
To personalize the image and the settings for displaying operating information, such as color scheme or output audio and textual information, there is a block of settings, intervention that does not affect the functionality of the indicator.
The indicator settings wolf
The identified extremum points are numbered, and then made markings with the designation of the sweet-zone is displayed in the terminal in yellow. The potential shape is displayed in four points, as well as the intended appearance of the fifth. This area is called the peace area.
What is peace zone in the theory of Wolff
In one indicator window can show two so-called wolf - namely, bullish and bearish. The formation of a wolf is completed, if the chart was inside a world zone or touch. This situation is a signal for entering a position.
In this case, the top of the candle appears the label, the color of which depends on the presence of divergence between the third and fifth points. The color of the bullish Wolfe is the default blue and the bearish is red. The very divergence is determined using the MACD indicator is a factor that amplifies the signal.
Point Wolfe wave chart
It should be noted that any indicator Wolfe wave is a tool which is used for their search and identification. To make the right decision about entering into the market, as well as the closing of the transaction, you need a certain theoretical base.
Traders, especially beginners, to successfully use in their strategies this method is recommended first to examine the theory itself, which will contribute to a successful trade.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 402
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