Bullish Wolfe Wave
Definition
Five converging waves down — point 5 undershoots the 1-3 line, then price targets the 1-4 line.
Psychology
Five narrowing swings down, a final undershoot, then a strong rally to a projected line.
Real-life analogy
💡 A compressed spring wound five times — release aims at a precise mark.
Expected direction
up
Entry / Stop / Target
Entry: At point 5 in the sweet zone below the 1-3 line. · Stop: Below point 5's undershoot. · Target: The 1-4 trendline (EPA).
Historical behaviour
Named by Bill Wolfe; precision-focused.
Illustrative success rate
Practitioner-reported high accuracy · Low reliability
Common beginner mistakes
- • Forcing 5-wave counts onto noise
Quick quiz — did you understand?
1. Is the Bullish Wolfe Wave generally considered bullish, bearish, or neutral?
2. After a confirmed Bullish Wolfe Wave, the expected direction is usually:
3. Which is a common beginner mistake with the Bullish Wolfe Wave?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.