Reversal patterns suck.
I mean… Does this sounds familiar?
You identified a reversal pattern. You’ve heard that this is a high-probability pattern.
So you placed a trade against the current trend and set your stop loss. Then, almost as soon as you placed your trade, the market resumed its original trend.
How many times did this happen to you?
Honestly I lost count. Sometimes it feels like the market is playing a joke on me. That’s why I went on a quest to find the single most reliable reversal pattern out there. And not only that, I wanted to code an easy-to-use indicator that automatically detects this pattern, so I don’t have to lift a finger.
I’d love to think that I’ve found it.
Here’s why: There’s a natural pattern that occurs in every market and on every time-frame. It’s called Wolfe Wave. And the interesting part about this pattern is that…
The shape of a Wolfe Wave pattern shows a fight for balance, between supply and demand… And this is particularly important because… When the pattern is completed, that means the fight for balance has ended. And you’d know which side has won: Supply or Demand, Bulls or Bears.
In other words, you’d immediately know (with high probability) which direction the market is heading. So you could be sure whether a trend reversal will happen or the original trend will continue.
No more fear. Now you could trade with confidence. Peace of mind.
That’s probably what most traders (me included) are craving. But enough theory.
Let’s take a look at Wolfe Wave patterns in action.
Here are 2 consecutive Wolve Wave patterns (one bearish and one bullish) that occured on EUR/USD 1-hour timeframe.
Look at this: