iCharts Discussions

Rubic123 · White Belt Joined: 17 Feb 2010 Posts: 8

Dear JJM,

Have a question on the ww theory.
First of all appreciate all the postings on the same.
Am following all of you and studying the same. One question if you can help.
While making a line joining points 1-3-5 and 2-4. Many a times the lines are parallel. This makes it difficult to obtain ETA.
Would this mean that it is not a ww.

In converging lines becomes easier to find ETA.

You may correct me if my question is wrong.

Regards

prst · White Belt Joined: 24 Sep 2011 Posts: 87

vishyvaranasi · Green Belt Joined: 11 Jul 2011 Posts: 1159

vishyvaranasi · Green Belt Joined: 11 Jul 2011 Posts: 1159

Hi Rubic

By the way one more suggestion. Pl. dont open new threads for the same topic. There is already a thread "Running with the Wolves". The topic being duscussed here brelates to it. So, you can post the issue there itaself. Opening new threads for the same topic will make life difficult for us only.
And also u might be getting more observations from other seniors if the topic is posted in a Running thread.

Vishy

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

yes, vishy is right, rubic, in that pl use existing thread.

He is also right about parallel and diverging lines in WW as per one article. But, I have an article by Bill Wolfe in which he has clearly said that 1-3 and 2-4 MUST converge. To that extent JJM is right.

Having said this, wolfe makes use of what he calls "sweet zone" and it takes advantage of this convergence. This is how he deals with it

(a) he draws a line from 3 (or somtimes 1) parallel to 2-4 and buys (for +ww) when price is between 1-3 and that parallel, to try make extra profit with SL below the parallel

(b) often price overshoots 1-3 while reaching point 5 and wolfe has shown that, sometimes, point 5 lies on the parallel line drawn from 1 or 3. Similarly, sometimes point 6 lies on parallel drawn to 1-4 from 2