Wolfe Waves - Tweaking the methodology

It is common knowledge that Wolfe Waves is used for trading reversal price points. However, there is a bit of subjectivity involved. Realistically speaking, a trader might either take a position a bit too early or perhaps a bit too late. Trying to get into the trade at the right time is perhaps what we all would like to achieve.

In my search for figuring the Wolfe waves, I came across this rather simple solution of using Rectangles.

In the picture below, I first plotted the Wolfe waves (bearish), including cloning TL 2 - 4 and projecting this from Point 3. This TL projection gives us the possible area of reversal for Wave 5. However, if we go simply by the projection, the reversal could happen anywhere.

Wolfe Waves - CADCHF, with Rectangle

Now I introduce a rectangle, from Point 1 - 2. This rectangle basically covers the pip distance and time as well. Cloning this rectangle and projecting it from Point 4, gives us a better estimate of the pip distance that will be traveled for Wave 5.

Calculating End of Wave 5

While I am not completely sure about this, to calculate the potential move for the Wolfe Wave, I now plot a rectangle between points 3 - 4, but this time taking into account the complete price move, i.e: if price between 2 and 4 is lower we take that into consideration as well.

Finally, cloning this rectangle from the end of the previously cloned rectangle should give us a possible idea. In this case for CADCHF, I expect price t reach 0.88765 around 18th of July.

Let's see if this works.