The Wolfwave Pattern / Why walk with bulls - run with the wolves!

[Melf Elf]

maxi,

You're welcome.  The NASDAQ has reversed 45 pts. to the upside after making that 2192.28 target, so you see what I mean about it being a good idea to take profits at targets.  Prices often go farther than the target or fall shy, but it's not a bad idea to "take what's given."

The QQQQ now is trading at BID 41.14...ASK 41.15 after making and exceeding the 40.30 target.

[calven]

COMPX bounced off the 1-4 line!

[calven]

1-4 line touched...then the FED indicates no more interest rate hikes in the near future.

amazing...

[calven]

Looks like the COMPX may try for the 1-4 line of the first WW!

[rurouni]

Wayne (or anybody else),

I've been trying to work with the Wolfe Wave formula for Metastock.  For Column A, I started with...


Pa:=Trough(4,LOW,5);

...per the instructions below. 

When I got to the end of Column A, I got this prompt: "please array e.g HIGH, LOW, CLOSE, etc., or function expected."  I didn't know what to put, so I put HIGH at the end of Column A.  Anybody know if that was right? 

When I ran the Explorer program, I got the message "no securites to report."

I included QTWW, EQR, QQQQ, SPX, COMPX and a few others in the test, figuring that one of those would show up as a WW.  None did.

Here's the formula that I entered, according to the link that you gave us, Wayne:
   
Here's a simple Metastock exploration for locating Wolf Wave patterns. It doesn't hit all that often, but when it does, it's best to pay attention.

ColA: WW

Pa:=Trough(4,LOW,5);

Pb:=Peak(3,HIGH,5);

P1:=Trough(3,LOW,5);

P2:=Peak(2,HIGH,5);

P3:=Trough(2,LOW,5);

P4:=Peak(1,HIGH,5);

P5:=Trough(1,LOW,5);

tb:=TroughBars(1,LOW,5);

tb<=4 AND

p1 > pa AND

pb < p2 AND

p1 < p2 AND

p1 < p4 AND

p1 > p3 AND

p3 > p5 AND

p4 < p2 AND

Here's where I got the prompt to put HIGH, LOW, CLOSE or expected function.

ColB: Tangents

p1:=Trough(3,LOW,5);

p3:=Trough(2,LOW,5);

p5:=Trough(1,LOW,5);

o1:=p1-p3;

o2:=p1-p5;

a1:=TroughBars(3,LOW,5)-TroughBars(2,LOW,5);

a2:=TroughBars(3,LOW,5)-TroughBars(1,LOW,5);

tan1:=o1/a1;

tan2:=o2/a2;

Abs(tan1-tan2)

Filter:

colA AND colB <= .2

Hi Melf,

I did get a chance to play around with MetaStock and got the same error message as you indicated.

Column B seems to be ok but Column A has either incomplete or missing command at the very last last line.  The last line in column A seems to has missing instructions or has too many syntax.

What I did was that I deleted the "AND" syntax.  So the last line in column A is simply:

p4 < p2

Retesting that I got no error.  I do not have much stock to query so I cannot test the validity of this formula.  If you have a lot of stocks in the portfolio give it a shot.

Let me know what you find.  According to the formula writer, the code doesn't hit all that often, but when it does, it's best to pay attention.  I guess we won't be able to verify the validity of the code until we can get a hit.

[Melf Elf]

Column B seems to be ok but Column A has either incomplete or missing command at the very last last line.  The last line in column A seems to has missing instructions or has too many syntax.

Wayne,

I didn't have a problem with Column B either.

What I did was that I deleted the "AND" syntax.  So the last line in column A is simply:

p4 < p2

Okay, I didn't get an error message, so that works...if the formula is correct.   

Retesting that I got no error.  I do not have much stock to query so I cannot test the validity of this formula.  If you have a lot of stocks in the portfolio give it a shot.

I have a lot of stocks, but I have to load them individually to test the WW formula.   

Let me know what you find.  According to the formula writer, the code doesn't hit all that often, but when it does, it's best to pay attention.  I guess we won't be able to verify the validity of the code until we can get a hit.

Okay.  I'll work on it.  I'll let you know if I get a hit.  Thanks for your efforts, Wayne.  Applause.

[rurouni]

I have a lot of stocks, but I have to load them individually to test the WW formula.

Okay.  I'll work on it.  I'll let you know if I get a hit.  Thanks for your efforts, Wayne.  Applause.

Hi Melf,

Thanks for the applause.   In the explorer windows what you can do is highlight all the stocks in your portfolio by highlighting the first symbol on the list then hold down the 'shift' key AND the 'page down' key.  OR simply highlight all the stocks by using the mouse.  Then run the exploration and it will scan through all the selected stocks. 

[thai626]

RHAT may have a bearish wolvewave formation.  It's been in a solid uptrend for quite a while now.  I, personally will not short this stock.  The risk/reward ratio just isn't there for me in this trade.  Just thought it might be a good case study if it is a valid wolvewave pattern.

Happy trading eveyone.  May 2006 be a prosperous year for you!

Thai


Hmmm.......TARGET PRICE  = $27.5 (I'm not sure why the .5 didn't print out on the chart)

[Melf Elf]

 In the explorer windows what you can do is highlight all the stocks in your portfolio by highlighting the first symbol on the list then hold down the 'shift' key AND the 'page down' key.  OR simply highlight all the stocks by using the mouse.  Then run the exploration and it will scan through all the selected stocks. 

Wayne,

Applause for that good hint.  You reminded me of something that worked: click on the the first symbol, then hold down Shift and Ctrl at the same time, then click on the last symbol on the list.  That lights up all of the stocks, and I could add them that way.  Thanks! 

That's the good news.  The bad news is that I have 400 stocks and indices loaded now, and got NO Wolfe Wave patterns when I ran it.   

I don't know if that means that there weren't any. or that the formula is wrong.  We'll just have to keep running the Explorer every day and see if we get one.

Thanks a lot for your help, Wayne.

RHAT may have a bearish wolvewave formation.  It's been in a solid uptrend for quite a while now.  I, personally will not short this stock.  The risk/reward ratio just isn't there for me in this trade.  Just thought it might be a good case study if it is a valid wolvewave pattern.

thai,

I don't think that it is because your Wave 1-4 bisect slopes upward.  I think it has to slope downward on a Bearish Wolfe, but I'm not positive about that.

   

[rurouni]

The bad news is that I have 400 stocks and indices loaded now, and got NO Wolfe Wave patterns when I ran it.   

I don't know if that means that there weren't any. or that the formula is wrong.  We'll just have to keep running the Explorer every day and see if we get one.

Thanks for your applause again Melf.  I will keep running it and let you know if there is any hit.  Also, I will keep an eye for more metastock wolfwave formula.

[Melf Elf]

I will keep running it and let you know if there is any hit.  Also, I will keep an eye for more metastock wolfwave formula.

Wayne,

Thanks, I'll do the same.  I just ran the Explore, and when I got the results (there were none), I noticed a "Rejects" tab on the Results page, so I looked in there to see what that was.  Here's a sample of what I got:

Security Name   Reason for Rejection   Location   
EQUITY RESOURCES   Filter reference to N/A value in column A.  C:\DATA\stocks\nyse   
QUANTUM FUEL SYS TECH   Normal filter rejection.   C:\DATA\stocks\NAZ   
NASDAQ COMP   Filter reference to N/A value in column A.   C:\DATA\Indices   
QQQQ   Filter reference to N/A value in column A.   C:\DATA\Indices   
APPLE COMPUTER   Filter reference to N/A value in column A.   C:\DATA\stocks\NAZ   
ABLE ENERGY   Normal filter rejection.   C:\DATA\stocks\NAZ   
AFFYMETRIX   Normal filter rejection.   C:\DATA\stocks\NAZ   
ALIGN TECHNOLOGY   Normal filter rejection.   C:\DATA\stocks\NAZ   
ALNYLAM PHARMACEUTICALS   Normal filter rejection.   C:\DATA\stocks\NAZ   
APPLIED MATERIALS   Normal filter rejection.   C:\DATA\stocks\NAZ   
AMGEN   Filter reference to N/A value in column A.   C:\DATA\stocks\NAZ   
AMAZON   Normal filter rejection.   C:\DATA\stocks\NAZ   
ARIBA   Normal filter rejection.   C:\DATA\stocks\NAZ   
BEACON POWER   Normal filter rejection.   C:\DATA\stocks\NAZ   

The "normal filter rejection" would seem to suggest that our formula was fine, and that there just weren't any WWs.  The "Filter reference to N/A value in column A" would seem to suggest that we've still got a problem with what we have plugged in to column A.

It's strange that I got about an equal amount of both reasons for the rejection when I have the same formula plugged in for all of the stocks.   Go figger, huh? 

Anyway, I'll continue to run it, and I'll let you know if I get any bites.  Or, is that bytes?   

Thanks again for all of your help.

[calven]

Wait for a return to the previous WW support line... then load up on tech again...


Melf Elf and other DESC "stalkers"

http://www.3stocksonfire.org/trading/index.php?topic=1833.msg42712#msg42712

[Melf Elf]

Wait for a return to the previous WW support line... then load up on tech again...

cal,

Thanks for all of your work on the Wolfe Waves.  Applause.

It looks like we completed 5 waves up off the October low, right at your Wolfe Wave bisect, and within 6 points of the Wave 4 Bull Flag target.

Sorry, this is one of those charts that looks like I threw a pizza at it.   

My read is that late November to early January was "tricky" because it was a Wave 4 A-B-C correction, and that's usually the nature of those beasts.  A lot of pattern "morphing," or "changing."

1. In red, we had the Bear Flag/H&S Top.  The break measured to 2192.28, which we MADE  at the January 3 low. 

2. In blue, we had your Wolfe Wave. 

3. In green, we had a Bull Flag, the bottom of which was at the January 3 low.

So, at the January 3 low, we had  a confluence of:

a. Bear Flag/H&S Top  MADE.
b. Your Wolfe Wave
c. The bottom of the Wave 4 (A-B-C)  Bull Flag

I drew the 5 Wave structure off the October low beneath the Ichimoku Kinko Hyo chart, where I only show Wave 4 as the Bull Flag, without all of the "pizza stuff" that also was going on during Wave 4.

I'll post that chart next.

[Melf Elf]

5 Wave Structure off the October low is drawn beaneath the chart.

EDIT:  Sorry, that was the wrong chart.  This should be right.

[akclide]

Hey guys I am not able to post the chart right now but if somebody can post a chart of XMSR.
You will see a great WW forming.
12/08 point 1
12/15          2
1/3             3
1/11            4

point 5 around 26.50 current price27.17