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Wolfe Waves 4.1

Metatrader Indicator (MT4/MT5)

  • Overview

    This indicator finds Wolfe Waves, which are natural and reliable reversal patterns, present in all markets and timeframes, which represent a fight between bulls and bears to find a price equilibrium. It is a top performing entry strategy, which sadly does not present itself very often.

    • 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 mostly non-repainting

    Since Wolfe Waves can expand quite a bit (especially in the forex market) this indicator implements a twist: it waits for a donchian breakout in the right direction before signaling the trade. The end result is an otherwise repainting indicator with a very reliable trading signal.

    • Choose your wave amplitudes and colors
    • It is 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.

    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:

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  • Input parameters
    Input parameters

    When loading the indicator or EA 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.

    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.
  • ? FAQ
    I don't see many Wolfe Waves in the chart. What can I do?
    Wolfe Waves do not happen very often. To compensate, you can load the indicator several times in the chart with different size parameters, for instance, 6, 12, 18 and 24. By searching for different wave sizes you are increasing the odds of finding one. However waves might overlap in the chart if you choose this approach.
    Are big Wolfe Waves more valid than smaller ones?
    No, every Wolfe Wave is valid by itself.
    Hey! I am seeing the last leg of the wolfe wave repainting!
    Since the indicator studies tops and bottoms, the last leg of the Wolfe Wave must repaint. However, the breakout level for the trade is deterministic and trading signals are mostly non-repainting.
    How can I confirm Wolfe Wave trading signals?
    Wolfe Waves can be confirmed with oscillator divergences or Bollinger Bands, for example.
    Why are Wolfe Waves so profitable?
    Wolfe Waves are very profitable because they take place at absolute tops and bottoms of the market after a strong overbought or oversold period, and the potential price movement they can trigger is enormous.
  • </> Developers

    In order to build your expert advisor, you can read data from the indicator using the iCustom() function as exemplified below. The indicator has one extra buffer which only purpose is to store trading signals as constants: this is the only buffer you need to read from. Copy and paste the code below into your EA, and replace the indicator name of the iCustom() call with your own.

    //---- 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);
    }
  • Comments

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Screenshots

Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader
Wolfe Waves Indicator for Metatrader

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