The Pz WolfeWaves Indicator utilizes a wave like pattern called WolfeWaves. The WolfeWaves pattern is a pattern that occurs naturally in all financial markets. The pattern consists of five waves. The five waves shows supply and demand and also indicate the pressure that is present towards an equilibrium price. The WolfeWaves may develop over short-term or long-term time frames such as minutes or weeks and are used to predict where a price is heading and when it will get there.
Logically speaking the WolfeWaves indicators use the WolfeWaves patterns to predict and indicate when prices will move back to their center of gravity (COG) which is also referred to as the mean. When the Wolfe waves are correctly identified, they can be used to precisely predict the equilibrium price of the underlying currency pair (security). By so doing it helps to foretell price reversals which are to be expected to cause big price variations.
Properties of PZ WolfeWaves Indicator.
The Wolfe waves, have the following physical characteristics.
The Wolfe waves, have the following physical characteristics.
- The Wolfe Waves 3 and 4 are located within the channel created by the Wolfe Waves 1 and 2.
- Wolfe Waves 1 and 2 are equal to waves 3 and 4.
- The Wolfe Wave 4 is bound in the channel created by waves 1 and 2.
- The time between all waves is regular.
- The Wolfe Wave 5 goes past the trendline made by waves 1 and 3.
Trading using PZ WolfeWaves Indicator.
Wolfe Waves indicator is one of the amazingly easy to trade indicators. When trading, the trade should be taken when the price closes above the trendline created by waves 1 and 3. Then the last point of the wave is supposed to be used as a defensive stop-loss.
For the case of accuracy, the PZ Wolfe Waves indicator apparatuses a trading filter that delays the signal while waiting for a price-based breakout takes place in the direction of the wave, making trades 99% accurate and increasing the profit factor.
Because the indicator uses tops and bottoms to draw Wolfe waves, the last leg of the wave must always repaint. However, the trading signal is based on the breakout of the trendline created by waves 1 and 3 and therefore trading decisions are accurate and almost never repaint.
This indicator should be used on smaller timeframes. When used on larger timeframe (froM30 onwards) the trendlines are not visible.
When the prices go past the breakout level you should place an order targeting the target level line.
Free-PZ-WolfeWaves-Indicator . rar
Source : forexobroker.com
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