Investors who try to make money based on timing the market with technical analysis will be familiar with Wolfe Waves. A Wolfe Wave is a five-wave price chart pattern that tells investors the likely equilibrium price of an asset.
What’s a Wolfe Wave look like? All the waves must cycle at a consistent interval of time, the third and fourth waves must live within the band created by the first and second waves, and the third and fourth waves should be symmetrical with the first and second waves. The last of the five waves exits the band, or channel, of the initial waves.
Where do Wolfe Waves wander? Well, according to the “founder,” or guy who observed the pattern, Bill Wolfe: everywhere, in all markets.