Wolfe wave trading

Wolfe waves: quick introduction

Wolf waves belong to swing trading methods. It was developed by Bill Wolfe, who has made living trading S&P.

The general idea is based around finding channeling markets that are showing an imbalance and by counting waves and drawing trend lines spot perfect entries and project accurate profit targets.

Wolf wave pattern consists of 5 waves, which form a channel or an ascending/descending wedge in advancing/declining markets.

Schaff Trend Cycle indicator

Schaff Trend Cycle

The Schaff Trend Cycle Indicator (STC) by Dough Schaff, was developed to improve upon the speed and accuracy of the MACD indicator when it comes to identifying trends. It uses a MACD Line (the difference  between two exponential moving averages) through a reworked stochastic algorithm.

Elliott Waves

Idea behind Elliott Waves

Elliott Waves were introduced by Ralph Nelson Elliott in the 1930s for stock trading. The theory is based solely on the phenomenon of mass psychology, which more often than not predetermines the outcome of the market behavior.  

 

mass behaviour => market behaviour

 

Detrended Price Oscillator (DPO)

Detrended Price Oscillator

Detrended Price Oscillator (DPO) is an indicator for eliminating trends in prices.
DPO allows to more easily identify cycles and, based on that, overbought/oversold levels.