Wolfe Waves 4.1

Metatrader (MT4/MT5) Indicator

"Wolfe Waves are a fight towards an equilibrium price and one of the most reliable predictive reversal patterns."
- Bill Wolfe
Wolfe Waves are natural and reliable reversal patterns, present in all markets and timeframes. These waves can manifest having different amplitudes and are difficult to spot. This indicator finds them all.
  • Amazingly easy to trade
  • Detect all wolfe waves present in the chart
  • Trade reliable price reversals in all timeframes
  • The indicator analyzes its own quality and performance
  • The indicator is non-repainting
This indicator is specially accurate because it waits for a breakout in the wave direction before signaling the trade, and its winning ratio is around 90%.
  • Choose your wave amplitudes and colors
  • A cutting-edge tool for experienced traders
  • It implements email/sound/push alerts for trading signals
Enhance your trading activity with the best and most complete Wolfe Waves indicator, just like our customers have already done.

Video

Definition of Wolfe Wave

It is a naturally occurring trading pattern present in all financial markets. The pattern is composed of five waves showing supply and demand and a fight towards an equilibrium price. These patterns can develop over short- and long-term time frames such as minutes or weeks and are used to predict where a price is heading and when it will get there.

If identified correctly, Wolfe waves can be used to accurately predict the scope (equilibrium price) of the underlying security and to anticipate price reversals which are likely to cause big price movements. To identify Wolfe waves, they must have the following characteristics.

  • Waves 3-4 must stay within the channel created by 1-2
  • Wave 1-2 equals waves 3-4
  • Wave 4 is within the channel created by waves 1-2
  • There is regular time between all waves
  • Wave 5 exceeds trendline created by waves 1 and 3
Wolfe Waves for Metatrader4
How to trade using Wolfe Waves

Wolfe Waves are amazingly easy to trade! The trade must be taken when the price closes above the trendline created by waves 1 and 3, and the last point of the wave should be used as a protective stop-loss.

The PZ Wolfe Waves indicator implements a trading filter which delays the signal until a price-based breakout takes place in the direction of the wave, making trades 99% deterministic and increasing the profit factor.

Because the indicator uses tops and bottoms to draw wolfe waves, the last leg of the wave must always repaint. However, the trading signal is based on the breakout of the trendline created by waves 1 and 3 and therefore trading decisions are deterministic and almost never repaint.

Take a look at some examples below:

Settings and Input Parameters

When loading the indicator to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks. This is what each parameter does.

Size of waves to look for
The size of the wave is the minimum distance between alternate points of the wave. A higher value means the indicator will look for bigger waves -in size-.
Breakout in bars
The indicator will display a breakout signal after a wave is formed to help you timing your trades. This value responds to a simple donchian channel, for example if set to 3, a breakout arrow will be displayed after the highest/lowest of 3 bars is broken after a wave appears on the chart.
Only Strict Waves
Enable this option if you wish to only see waves that respond to the original strict definition of a Wolfe Wave. If set to false, you will see more patterns but the 4th point can be above or below the 2nd point.
Display Theoretical Target Line
Enable this option to see the theoretical taget line for the Wolfe Wave. This line is not often reached, so this option is disabled by default.
Max History Bars
This parameter controls how many past bars are examined to increase the indicator's performance and minimize memory usage.
Alerts
Enable display/email/push/sound alerts for breakouts.
Developers

In order to build your expert advisor, you can read data from the indicator using the iCustom() function as exemplified below. Read more information about the iCustom() function here.

//---- Step 1: Define constants in your EA
#define OP_BUY_WW    2
#define OP_SELL_WW   3
//---- Step 2: Read value from data buffer
int start()
{
// Read value from data buffer
double value  = iCustom(Symbol(), Period(), "PZ_WolfeWaves_LICENSENUM", 2, 1);
// Do something
if(value == OP_BUY)      { /* Your code for bullish signal (blue arrow) */ }
if(value == OP_SELL)     { /* Your code for bearish signal (red arrow) */ }
if(value == OP_BUY_WW)   { /* Your code for bullish wolfe wave (before arrow) */ }
if(value == OP_SELL_WW)  { /* Your code for bearish wolfe wave (before arrow) */ }
if(value == EMPTY_VALUE) { /* Your code if no pattern or breakout */}
// Exit
return(0);
}
Frequently Asked Questions
Are big Wolfe Waves more valid than smaller ones?
Hey! I am seeing the last leg of the wolfe wave repainting!
How can I confirm Wolfe Wave trading signals?
Why are Wolfe Waves so profitable?