WW – Bullish

Developed at Definedge.

Identified by Bill Wolfe and his son, Brian, Wolfe waves are popular wave chart patterns.

It can be said that in a five-wave structure, the high of the fourth wave is above the low of the second wave, i.e. when the second and fourth waves overlap in the case of a bullish Wolfe wave pattern.

This pattern has been converted into P&F format by Prashant Shah. According to the image above, O-X-O-X-O are five swing moves or five waves. The bottom of the second wave is lower than the high of the third wave. In the event that this formation is followed by a positive column reversal, the WW Bullish P&F pattern will be triggered.

This is a bullish trend reversal pattern. In the event that the price falls below the bottom of the fifth wave, the pattern becomes invalid.

This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.