Wolfe Wave by Bill Wolfe

Using your imagination (Excerpt from my advanced lessons.)

Throughout my manual and faxes, you will often see the words: natural, settles and rhythm. This is because I view the market as a fluid body of motion, one that eventually “settles” into a “natural” “rhythm.” When studying my methodology, it would be very helpful if you would also try to visualize and imagine in a natural way.

Picture a pebble dropping into a still pond. Before the pebble even hits the water, your mind can imagine—in advance—what the ensuing ripples will look like. This is because you have seen it, perhaps millions of times during your life. Picture a bowling ball dropping into a still pond. You may not have seen it as much, so your mind does a quick search and possibly produces the word chaos, or something similar. Apart from the size of the splash, the result would be the same. Ripples/Waves that eventually “settle” into a “natural rhythm.” The same thing happens in any free traded market.

When small pieces of news come out, there will be small ripples/Waves. When big pieces of news come out, there will be big Waves. Never entertain the idea that “this time it’s different.” The laws of nature cannot be repealed.