Bearish Wolfe Wave Chart Pattern — How to Spot and Trade It

Five converging waves up — point 5 overshoots the 1-3 line, then price falls toward the 1-4 line.

In plain words

A catapult drawn five clicks back — the release path is already drawn.

What the classic books say

The Bearish Wolfe Wave is a reversal pattern with reference reliability Low and illustrative behaviour of Practitioner-reported high accuracy (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Mirror of the bullish Wolfe wave.

Level by level

Beginner

Five narrowing swings up, a final overshoot, then a slide to a projected line.

Intermediate

Point 5's brief pierce of the 1-3 line traps the last buyers.

Advanced

Target the 1-4 line; invalidate on sustained closes above the overshoot.

Trade plan (educational template)

• Entry: At point 5 above the 1-3 line with rejection.
• Stop-loss: Above point 5's overshoot.
• Target: The 1-4 trendline (EPA).
• Check the numbers with the Risk-Reward calculator before any entry.

Common beginner mistakes

• No patience for the EPA target

Practise it now

• ▶ Draw the Bearish Wolfe Wave with live trendlines and a ghost forecast
• 📖 Full lesson in the Learning Hub

_Educational content only — not financial advice. Historical behaviour never guarantees future results._