Wolf WaveThe wolf wave is a chart pattern that can be used to help predict the price movement of a stock. In the pattern the stock bounces back and forth between support and resistance. The trading range gets smaller and the stock squeezes together, finally the stock breaks up out of the trading range and seems to make new highs.
Target the target can be found by drawing a line from the first low of the pattern thru the second high of the pattern (See Picture). The security is likely to meet up with this line. Tip someone looking to trade this pattern might buy on the breakout and put a stop below the point it just broke out of. It is important to also manage your risk so that you do not lose too much on 1 trade if the pattern fails.
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