A bearish Wolfe Wave setting up in GLD?? For those who have a hatrEd for obscure patterns of price, a wolfe wave is just a way of highlighting narrowing wedges (3-pushes to a top/bottom), so just stop your hating! These types of narrowing wedges play out in an exhaustion move (bear/bull trap at Wave 5) before moving in the direction of the target (1-4 line).
Most recently we have this setup unfolding
Within the "sweet spot" (#5 point) it would be preferable to see strong volume come in to confirm a bearish suspicion.
On a broader scale however, there is this bearish Wolfe Wave in GLD:
The "sweet spot" terminates above the $130 level, and volume (like that seen around our #3 point in December) would be a guiding factor. In this instance, the target would come in around the $105 mark (which happens to be previous resistance-turned-support).
Of note: the former bearish wolfe wave can come to complete it's target and the latter bearish wolfe wave would still be in play!
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.