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To: E.J. Neitz Jr who wrote (23310)	5/12/2000 7:59:00 AM
From: DanZ	Respond to of 53068

Wolfe Waves. A friend of mine told me about a charting method that he has been using called Wolfe Waves. I'm always interested in looking at other technical analysis methods to see if I can improve my trading results. We all have our own strategies, but I think that TA is much more important than FA when trading (as opposed to investing). Wolfe Waves are based on the theory that stocks, indexes, commodities, etc, oscillate between balancing points. When the pattern develops, you take a position in the buy zone (long) or sell zone (short) after the stock trades back up (down) through the buy or sell point. You then place a close stop just below the buy point (sell point). The results are quite remarkable and placement of a stop near the entry point limits risk. If anyone is interested, there is a web site for Wolfe Waves at wolfewave.com I used Wolfe Waves to trade CSCO yesterday. Not only was this my first real trade using Wolfe Waves, but it was also the first time ever that I have traded CSCO (hard to believe, huh? lol). The stock was trading at about 59 1/2 when I saw a perfect Wolfe Wave developing. The buy point was at about 58 1/2, so I set an alarm, which went off about 30 minutes before the close. As soon as the stock touched the buy area and started back up, I bought it at the market...got filled at 58 5/8. The sell target was at about 60 1/4, but I got impatient and sold it about 30 seconds later for a 1/4 point profit LOL. If I had gone with the plan, I could have sold the stock at the target point about 15 minutes later. I sold primarily because I didn't want to hold it overnight, and hey, a 1/4 point profit in 30 seconds isn't bad! Has anyone heard of or used Wolfe Waves? If so, what is your experience with them? Obviously every trade won't be a profit, but the idea is to patiently wait for patterns to develop before taking a position and limit losses to small amounts. The number of winning trades should exceed the losers, and the magnitude of profits should greatly exceed the magnitude of losers. I'm not planning to abandon my tried and tested technical analysis methods, but Wolfe Waves might be a profitable addition to my trading. Thanks, Dan