Wolfe Waves and Fibonacci Relationship

I'm trying to find out the relation between Wolfe Waves and Fibonacci. More importantly, looking for a qualification of the Wolfe Waves, by means of Fibonacci.

In search for this, i've narrowed down to a couple of forex pairs, which seem to have some sort of relationship with the Fib levels of 0.38, 0.5 and 0.618

Analysis #1: AUDJPY


In this first pair, we have the weekly charts for AUDJPY. As can be seen from this chart, when plotting Fib lines connecting pivots 1 & 2 we have point 4 respecting 0.618% Fib Level.

Observations:

• Point 4 respects 0.618% Fib level for Wave 1 - 2
• Point 5 almost goes back to 0% Fib level for Wave 1 - 2

Questions:

• Where will the Wolfe Wave end up?
• The first obvious target could be 0.382%, followed by the 100% level which is 55.771

Analysis #2: AUDUSD

In the case of AUDUSD, we again see that 0.5% Fib Level of Wave points 1 - 2 was respected. In other words, Wave 4 touched the 0.5% Fib before shooting off. 


So what can we deduce from the above two observations?

1) Is it possible to correctly identify Wave 4, and this ride the wave through Wave 5?
2) How do the Fib levels play out in reference to the Wolfe Wave?

I suppose, the answers to these questions will perhaps lie in the coming months. In the mean time, i'll continue looking for chart set ups perhaps on lower time frames to get a better idea.

Trade Set up - Long Facebook

Was reading some news about Facebook and thought to take a look at the charts. Analyzing the charts with Wolfe Waves and Fib confluence, I conclude that a possible Long trade for Facebook is being formed.

Of course, this is going to be a long term trade because the analysis comes from a Daily chart, so expect a month, if not more for the trade to be filled.

What happens after the Wolfe Wave?

We know what Wolfe Waves are and that in most cases, the trade is closed once we finish the completion of Wave 5. But what happens after that?

Well, I just spotted something interesting on the EURUSD. We see that the EPA has been reached almost in conjunction with the ETA.

EURUSD - Bullish Wolfe Wave Completion

The obvious question is... what next? Will price rise or fall?

I took the same chart as above and then extended the trend line 1 -3. I also took a parallel of TL 1-3 and projected it from Point 1.

EURUSD - Wolfe Wave Continuation

What's obvious from this chart is the intersection of the TL and the EPA line. While the extended TL 1 -3 acts as a support line. While this is only my first observance, it will be interesting to see how the EURUSD plays out and more importantly, will it reach the price of intersection 1.317?