Bearish Wolfe Wave
Definition
Five converging waves up — point 5 overshoots the 1-3 line, then price falls toward the 1-4 line.
Psychology
Five narrowing swings up, a final overshoot, then a slide to a projected line.
Real-life analogy
💡 A catapult drawn five clicks back — the release path is already drawn.
Expected direction
down
Entry / Stop / Target
Entry: At point 5 above the 1-3 line with rejection. · Stop: Above point 5's overshoot. · Target: The 1-4 trendline (EPA).
Historical behaviour
Mirror of the bullish Wolfe wave.
Illustrative success rate
Practitioner-reported high accuracy · Low reliability
Common beginner mistakes
- • No patience for the EPA target
Quick quiz — did you understand?
1. Is the Bearish Wolfe Wave generally considered bullish, bearish, or neutral?
2. After a confirmed Bearish Wolfe Wave, the expected direction is usually:
3. Which is a common beginner mistake with the Bearish Wolfe Wave?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.