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.

Wolfe Waves and Fibonacci

Was trying out an experiment. While this is just the first case I was able to document, the results sure seem interesting.

Wolfe Waves - Fib Entry-Projection

Observations:

Notice the confluence of the Fib zones, which indicate the entry point.

A rectangle was drawn from the bottom TL to where the price pierced the TL 1,4. The same was then copied down from the TL, showing where price would reach.

EURCHF - Wrong Wolfe Wave

Upon closer analysis, I discovered that the previous Wolfe Wave for the EURCHF was wrong as it was going against the trend. The H4 Chart below shows the manually drawn Wolfe Waves and also blends in with the overall downtrend of the EURCHF.

I will let the current EURCHF trade run its course while placing a pending SELL order close to the 38.2% Fib level, just below it (1.2216) with target price at 1.21811 or 23.6% level. The stop loss would be placed at the 50% Fib level of 1.22519.

AUDCAD - A Perfect Wolfe Wave

I don't usually trade crosses, but I was randomly checking various pairs a while ago and came across the AUDCAD Daily Charts. The Wolfe Wave Pattern we see here is just perfect with price piercing the estimated price line. You can also notice how Waves 1, 2 and 5 correspond with sharp changes on the Schaff Trend Cycle.

This clearly goes to show how we can use the Schaff Trend Cycle to enable us to trade Wolfe wave patterns. In fact, should we ever come across accurate corresponding price reversals on Wolfe Waves, depicted by the Schaff Trend, we can simply assume that price will indeed touch the line connecting Waves 1 and 4. An even perfect trade set up would be to see converging lines from 1, 3, 5 and 2 and 4.

Below the AUDCAD Daily Chart which looks simply beautiful.

AUDCAD - Daily Charts - Perfect Wolfe Wave Formation