(Click On Charts To Enlarge)
The basic idea behind a Wolfe Wave is that the market is stretched in one direction to the point that Wave 5 turns out to be a fakeout, and the market reverses and heads for the Target Line (#6), usually in a sharp, snapback fashion.
VPHM is a "possible" Bearish Wolfe Wave. Friday was a Long-Legged Bearish Doji Star Hangman sitting above the pattern and suggesting a possible reversal to the downside. There's also a DOUBLE negative divergence in the MACD (Chart #2).
LEH is a "possible' Bullish Wolfe Wave sitting below the pattern and suggesting a possible upside reversal.
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